Correlation Between Eguana Technologies and Secure Energy

Can any of the company-specific risk be diversified away by investing in both Eguana Technologies and Secure Energy at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Eguana Technologies and Secure Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eguana Technologies and Secure Energy Services, you can compare the effects of market volatilities on Eguana Technologies and Secure Energy and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Eguana Technologies with a short position of Secure Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eguana Technologies and Secure Energy.

Diversification Opportunities for Eguana Technologies and Secure Energy

0.0

Correlation Coefficient

Eguana Technologies  Secure Energy

Pay attention - limited upside

The 3 months correlation between Eguana and Secure is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eguana Technologies and Secure Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secure Energy Services and Eguana Technologies is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Eguana Technologies are associated (or correlated) with Secure Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secure Energy Services has no effect on the direction of Eguana Technologies i.e., Eguana Technologies and Secure Energy go up and down completely randomly.

Pair Corralation between Eguana Technologies and Secure Energy

If you would invest  1,160  in Secure Energy Services on September 4, 2024 and sell it today you would earn a total of  463.00  from holding Secure Energy Services or generate 39.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Eguana Technologies  vs.  Secure Energy Services

Eguana Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eguana Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Eguana Technologies is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Secure Energy Services

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Secure Energy Services are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Secure Energy displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eguana Technologies and Secure Energy

The main advantage of trading using opposite Eguana Technologies and Secure Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eguana Technologies position performs unexpectedly, Secure Energy can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Secure Energy will offset losses from the drop in Secure Energy's long position.

The idea behind Eguana Technologies and Secure Energy Services pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.