Correlation Between FuelPositive Corp and PyroGenesis Canada

Can any of the company-specific risk be diversified away by investing in both FuelPositive Corp and PyroGenesis Canada 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 FuelPositive Corp and PyroGenesis Canada into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for FuelPositive Corp and PyroGenesis Canada

-0.14

Correlation Coefficient

FuelPositive Corp  PyroGenesis Canada

Good diversification

The 3 months correlation between FuelPositive and PyroGenesis is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding FuelPositive Corp and PyroGenesis Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PyroGenesis Canada and FuelPositive Corp 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 FuelPositive Corp are associated (or correlated) with PyroGenesis Canada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PyroGenesis Canada has no effect on the direction of FuelPositive Corp i.e., FuelPositive Corp and PyroGenesis Canada go up and down completely randomly.

Pair Corralation between FuelPositive Corp and PyroGenesis Canada

Assuming the 90 days trading horizon FuelPositive Corp is expected to generate 2.8 times more return on investment than PyroGenesis Canada. However, FuelPositive Corp is 2.8 times more volatile than PyroGenesis Canada. It trades about 0.16 of its potential returns per unit of risk. PyroGenesis Canada is currently generating about 0.02 per unit of risk. If you would invest  3.50  in FuelPositive Corp on April 23, 2025 and sell it today you would earn a total of  3.50  from holding FuelPositive Corp or generate 100.0% return on investment over 90 days.

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

FuelPositive Corp  vs.  PyroGenesis Canada

FuelPositive Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FuelPositive Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical indicators, FuelPositive Corp showed solid returns over the last few months and may actually be approaching a breakup point.

PyroGenesis Canada

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PyroGenesis Canada are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, PyroGenesis Canada is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with FuelPositive Corp and PyroGenesis Canada

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

The idea behind FuelPositive Corp and PyroGenesis Canada 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.