Correlation Between Anterix and Enersys

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

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

Diversification Opportunities for Anterix and Enersys

0.4

Correlation Coefficient

Anterix  Enersys

Very weak diversification

The 3 months correlation between Anterix and Enersys is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Anterix and Enersys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enersys and Anterix 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 Anterix are associated (or correlated) with Enersys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enersys has no effect on the direction of Anterix i.e., Anterix and Enersys go up and down completely randomly.

Pair Corralation between Anterix and Enersys

Given the investment horizon of 90 days Anterix is expected to under-perform the Enersys. In addition to that, Anterix is 1.33 times more volatile than Enersys. It trades about 0.0 of its total potential returns per unit of risk. Enersys is currently generating about 0.03 per unit of volatility. If you would invest  7,935  in Enersys on October 3, 2024 and sell it today you would earn a total of  1,308  from holding Enersys or generate 16.48% return on investment over 90 days.

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

Anterix  vs.  Enersys

Anterix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anterix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Enersys

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Anterix and Enersys

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

The idea behind Anterix and Enersys 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.