Correlation Between Cosan and Just Energy
Can any of the company-specific risk be diversified away by investing in both Cosan and Just 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 Cosan and Just Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cosan Limited and Just Energy Group, you can compare the effects of market volatilities on Cosan and Just 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 Cosan with a short position of Just Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cosan and Just Energy.
Diversification Opportunities for Cosan and Just Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cosan and Just is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cosan Limited and Just Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Just Energy Group and Cosan 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 Cosan Limited are associated (or correlated) with Just Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Just Energy Group has no effect on the direction of Cosan i.e., Cosan and Just Energy go up and down completely randomly.
Pair Corralation between Cosan and Just Energy
If you would invest (100.00) in Just Energy Group on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Just Energy Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cosan Limited vs. Just Energy Group
Performance |
| Timeline |
| Cosan Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Just Energy Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cosan and Just Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cosan and Just Energy
The main advantage of trading using opposite Cosan and Just Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cosan position performs unexpectedly, Just 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 Just Energy will offset losses from the drop in Just Energy's long position.| Cosan vs. ASML Holding NV | Cosan vs. Transphorm Technology | Cosan vs. Hudson Technologies | Cosan vs. Microchip Technology |
| Just Energy vs. Beyond Inc | Just Energy vs. Funko Inc | Just Energy vs. Emerson Radio | Just Energy vs. Grocery Outlet Holding |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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