Correlation Between EnGene Holdings and BZDYF

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

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

Diversification Opportunities for EnGene Holdings and BZDYF

-0.03

Correlation Coefficient

EnGene Holdings  BZDYF

Good diversification

The 3 months correlation between EnGene and BZDYF is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding enGene Holdings Common and BZDYF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BZDYF and EnGene Holdings 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 enGene Holdings Common are associated (or correlated) with BZDYF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BZDYF has no effect on the direction of EnGene Holdings i.e., EnGene Holdings and BZDYF go up and down completely randomly.

Pair Corralation between EnGene Holdings and BZDYF

Given the investment horizon of 90 days EnGene Holdings is expected to generate 1.05 times less return on investment than BZDYF. In addition to that, EnGene Holdings is 14.26 times more volatile than BZDYF. It trades about 0.02 of its total potential returns per unit of risk. BZDYF is currently generating about 0.24 per unit of volatility. If you would invest  3,086  in BZDYF on September 22, 2024 and sell it today you would earn a total of  151.00  from holding BZDYF or generate 4.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	32.03%
Values	Daily Returns

enGene Holdings Common  vs.  BZDYF

enGene Holdings Common

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in enGene Holdings Common are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, EnGene Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

BZDYF

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BZDYF has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BZDYF is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with EnGene Holdings and BZDYF

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

The idea behind enGene Holdings Common and BZDYF 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.