Correlation Between Jutal Offshore and Tigo Energy

Can any of the company-specific risk be diversified away by investing in both Jutal Offshore and Tigo 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 Jutal Offshore and Tigo Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jutal Offshore Oil and Tigo Energy, you can compare the effects of market volatilities on Jutal Offshore and Tigo 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 Jutal Offshore with a short position of Tigo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jutal Offshore and Tigo Energy.

Diversification Opportunities for Jutal Offshore and Tigo Energy

0.81

Correlation Coefficient

Jutal Offshore  Tigo Energy

Very poor diversification

The 3 months correlation between Jutal and Tigo is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jutal Offshore Oil and Tigo Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tigo Energy and Jutal Offshore 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 Jutal Offshore Oil are associated (or correlated) with Tigo Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tigo Energy has no effect on the direction of Jutal Offshore i.e., Jutal Offshore and Tigo Energy go up and down completely randomly.

Pair Corralation between Jutal Offshore and Tigo Energy

Assuming the 90 days horizon Jutal Offshore is expected to generate 3.81 times less return on investment than Tigo Energy. But when comparing it to its historical volatility, Jutal Offshore Oil is 2.22 times less risky than Tigo Energy. It trades about 0.1 of its potential returns per unit of risk. Tigo Energy is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  81.00  in Tigo Energy on May 6, 2025 and sell it today you would earn a total of  48.00  from holding Tigo Energy or generate 59.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Jutal Offshore Oil  vs.  Tigo Energy

Jutal Offshore Oil

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jutal Offshore Oil are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Jutal Offshore showed solid returns over the last few months and may actually be approaching a breakup point.

Tigo Energy

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tigo Energy are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile technical and fundamental indicators, Tigo Energy displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jutal Offshore and Tigo Energy

The main advantage of trading using opposite Jutal Offshore and Tigo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jutal Offshore position performs unexpectedly, Tigo 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 Tigo Energy will offset losses from the drop in Tigo Energy's long position.

The idea behind Jutal Offshore Oil and Tigo Energy 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.