Correlation Between Acbel Polytech and Ennostar

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

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

Diversification Opportunities for Acbel Polytech and Ennostar

0.0

Correlation Coefficient

Acbel Polytech  Ennostar

Pay attention - limited upside

The 3 months correlation between Acbel and Ennostar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acbel Polytech and Ennostar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ennostar and Acbel Polytech 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 Acbel Polytech are associated (or correlated) with Ennostar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ennostar has no effect on the direction of Acbel Polytech i.e., Acbel Polytech and Ennostar go up and down completely randomly.

Pair Corralation between Acbel Polytech and Ennostar

If you would invest (100.00) in Ennostar on September 18, 2024 and sell it today you would earn a total of  100.00  from holding Ennostar or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Acbel Polytech  vs.  Ennostar

Acbel Polytech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acbel Polytech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Acbel Polytech is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Ennostar

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ennostar has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Ennostar is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Acbel Polytech and Ennostar

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

The idea behind Acbel Polytech and Ennostar 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.