Correlation Between Exchange Income and Secure Energy

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

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

Diversification Opportunities for Exchange Income and Secure Energy

0.51

Correlation Coefficient

Exchange Income  Secure Energy

Very weak diversification

The 3 months correlation between Exchange and Secure is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Exchange Income 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 Exchange Income 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 Exchange Income 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 Exchange Income i.e., Exchange Income and Secure Energy go up and down completely randomly.

Pair Corralation between Exchange Income and Secure Energy

Assuming the 90 days horizon Exchange Income is expected to generate 0.59 times more return on investment than Secure Energy. However, Exchange Income is 1.71 times less risky than Secure Energy. It trades about 0.19 of its potential returns per unit of risk. Secure Energy Services is currently generating about 0.06 per unit of risk. If you would invest  4,767  in Exchange Income on July 25, 2025 and sell it today you would earn a total of  755.00  from holding Exchange Income or generate 15.84% return on investment over 90 days.

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

Exchange Income  vs.  Secure Energy Services

Exchange Income

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Exchange Income are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Exchange Income reported solid returns over the last few months and may actually be approaching a breakup point.

Secure Energy Services

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Secure Energy Services are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Secure Energy may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Exchange Income and Secure Energy

The main advantage of trading using opposite Exchange Income and Secure Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exchange Income 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 Exchange Income 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.

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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.