Correlation Between Topaz Energy and SIG Combibloc

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

By analyzing existing cross correlation between Topaz Energy Corp and SIG Combibloc Group, you can compare the effects of market volatilities on Topaz Energy and SIG Combibloc 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 Topaz Energy with a short position of SIG Combibloc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Topaz Energy and SIG Combibloc.

Diversification Opportunities for Topaz Energy and SIG Combibloc

-0.42

Correlation Coefficient

Topaz Energy  SIG Combibloc

Very good diversification

The 3 months correlation between Topaz and SIG is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Topaz Energy Corp and SIG Combibloc Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIG Combibloc Group and Topaz Energy 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 Topaz Energy Corp are associated (or correlated) with SIG Combibloc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIG Combibloc Group has no effect on the direction of Topaz Energy i.e., Topaz Energy and SIG Combibloc go up and down completely randomly.

Pair Corralation between Topaz Energy and SIG Combibloc

Assuming the 90 days horizon Topaz Energy Corp is expected to generate 0.89 times more return on investment than SIG Combibloc. However, Topaz Energy Corp is 1.13 times less risky than SIG Combibloc. It trades about 0.14 of its potential returns per unit of risk. SIG Combibloc Group is currently generating about -0.2 per unit of risk. If you would invest  1,707  in Topaz Energy Corp on May 7, 2025 and sell it today you would earn a total of  203.00  from holding Topaz Energy Corp or generate 11.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Topaz Energy Corp  vs.  SIG Combibloc Group

Topaz Energy Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Topaz Energy Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent technical and fundamental indicators, Topaz Energy may actually be approaching a critical reversion point that can send shares even higher in September 2025.

SIG Combibloc Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days SIG Combibloc Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Topaz Energy and SIG Combibloc

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

The idea behind Topaz Energy Corp and SIG Combibloc Group 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.