Correlation Between MPhase Technologies and SDX Energy

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

By analyzing existing cross correlation between mPhase Technologies and SDX Energy plc, you can compare the effects of market volatilities on MPhase Technologies and SDX 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 MPhase Technologies with a short position of SDX Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of MPhase Technologies and SDX Energy.

Diversification Opportunities for MPhase Technologies and SDX Energy

-0.19

Correlation Coefficient

MPhase Technologies  SDX Energy

Good diversification

The 3 months correlation between MPhase and SDX is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding mPhase Technologies and SDX Energy plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SDX Energy plc and MPhase 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 mPhase Technologies are associated (or correlated) with SDX Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SDX Energy plc has no effect on the direction of MPhase Technologies i.e., MPhase Technologies and SDX Energy go up and down completely randomly.

Pair Corralation between MPhase Technologies and SDX Energy

Given the investment horizon of 90 days mPhase Technologies is expected to generate 3.77 times more return on investment than SDX Energy. However, MPhase Technologies is 3.77 times more volatile than SDX Energy plc. It trades about 0.13 of its potential returns per unit of risk. SDX Energy plc is currently generating about -0.12 per unit of risk. If you would invest  0.01  in mPhase Technologies on July 27, 2025 and sell it today you would earn a total of  0.01  from holding mPhase Technologies or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

mPhase Technologies  vs.  SDX Energy plc

mPhase Technologies

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in mPhase Technologies are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, MPhase Technologies disclosed solid returns over the last few months and may actually be approaching a breakup point.

SDX Energy plc

Risk-Adjusted Performance

Weakest

Over the last 90 days SDX Energy plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with MPhase Technologies and SDX Energy

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

The idea behind mPhase Technologies and SDX Energy plc 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.