Correlation Between Enfusion and Clear Secure

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

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

Diversification Opportunities for Enfusion and Clear Secure

-0.39

Correlation Coefficient

Enfusion  Clear Secure

Very good diversification

The 3 months correlation between Enfusion and Clear is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Enfusion and Clear Secure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Secure and Enfusion 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 Enfusion are associated (or correlated) with Clear Secure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Secure has no effect on the direction of Enfusion i.e., Enfusion and Clear Secure go up and down completely randomly.

Pair Corralation between Enfusion and Clear Secure

Given the investment horizon of 90 days Enfusion is expected to generate 0.48 times more return on investment than Clear Secure. However, Enfusion is 2.08 times less risky than Clear Secure. It trades about 0.18 of its potential returns per unit of risk. Clear Secure is currently generating about -0.02 per unit of risk. If you would invest  810.00  in Enfusion on September 5, 2024 and sell it today you would earn a total of  203.00  from holding Enfusion or generate 25.06% return on investment over 90 days.

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

Enfusion  vs.  Clear Secure

Enfusion

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Enfusion are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Enfusion displayed solid returns over the last few months and may actually be approaching a breakup point.

Clear Secure

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Clear Secure has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Clear Secure 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 Enfusion and Clear Secure

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

The idea behind Enfusion and Clear Secure 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 Commodity Directory module to find actively traded commodities issued by global exchanges.