Correlation Between ANSYS and Enfusion

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

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

Diversification Opportunities for ANSYS and Enfusion

-0.21

Correlation Coefficient

ANSYS  Enfusion

Very good diversification

The 3 months correlation between ANSYS and Enfusion is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding ANSYS Inc and Enfusion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enfusion and ANSYS 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 ANSYS Inc are associated (or correlated) with Enfusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enfusion has no effect on the direction of ANSYS i.e., ANSYS and Enfusion go up and down completely randomly.

Pair Corralation between ANSYS and Enfusion

Given the investment horizon of 90 days ANSYS Inc is expected to under-perform the Enfusion. But the stock apears to be less risky and, when comparing its historical volatility, ANSYS Inc is 1.47 times less risky than Enfusion. The stock trades about -0.09 of its potential returns per unit of risk. The Enfusion is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,047  in Enfusion on December 29, 2024 and sell it today you would earn a total of  67.00  from holding Enfusion or generate 6.4% return on investment over 90 days.

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

ANSYS Inc  vs.  Enfusion

ANSYS Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ANSYS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, ANSYS is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Enfusion

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Enfusion are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Enfusion may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with ANSYS and Enfusion

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

The idea behind ANSYS Inc and Enfusion 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.