Correlation Between Enad Global and Raketech Group

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

By analyzing existing cross correlation between Enad Global 7 and Raketech Group Holding, you can compare the effects of market volatilities on Enad Global and Raketech Group 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 Enad Global with a short position of Raketech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enad Global and Raketech Group.

Diversification Opportunities for Enad Global and Raketech Group

0.93

Correlation Coefficient

Enad Global  Raketech Group

Almost no diversification

The 3 months correlation between Enad and Raketech is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Enad Global 7 and Raketech Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raketech Group Holding and Enad Global 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 Enad Global 7 are associated (or correlated) with Raketech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raketech Group Holding has no effect on the direction of Enad Global i.e., Enad Global and Raketech Group go up and down completely randomly.

Pair Corralation between Enad Global and Raketech Group

Assuming the 90 days trading horizon Enad Global 7 is expected to under-perform the Raketech Group. But the stock apears to be less risky and, when comparing its historical volatility, Enad Global 7 is 1.29 times less risky than Raketech Group. The stock trades about -0.18 of its potential returns per unit of risk. The Raketech Group Holding is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest  439.00  in Raketech Group Holding on December 24, 2024 and sell it today you would lose (99.00) from holding Raketech Group Holding or give up 22.55% of portfolio value over 90 days.

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

Enad Global 7  vs.  Raketech Group Holding

Enad Global 7

Risk-Adjusted Performance

Very Weak

Over the last 90 days Enad Global 7 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Raketech Group Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Raketech Group Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Enad Global and Raketech Group

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

The idea behind Enad Global 7 and Raketech Group Holding 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.