Correlation Between EnGene Holdings and Elevation Oncology

Can any of the company-specific risk be diversified away by investing in both EnGene Holdings and Elevation Oncology 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 Elevation Oncology 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 Elevation Oncology, you can compare the effects of market volatilities on EnGene Holdings and Elevation Oncology 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 Elevation Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of EnGene Holdings and Elevation Oncology.

Diversification Opportunities for EnGene Holdings and Elevation Oncology

-0.31

Correlation Coefficient

EnGene Holdings  Elevation Oncology

Very good diversification

The 3 months correlation between EnGene and Elevation is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding enGene Holdings Common and Elevation Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elevation Oncology 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 Elevation Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elevation Oncology has no effect on the direction of EnGene Holdings i.e., EnGene Holdings and Elevation Oncology go up and down completely randomly.

Pair Corralation between EnGene Holdings and Elevation Oncology

Given the investment horizon of 90 days EnGene Holdings is expected to generate 2.03 times less return on investment than Elevation Oncology. In addition to that, EnGene Holdings is 1.58 times more volatile than Elevation Oncology. It trades about 0.02 of its total potential returns per unit of risk. Elevation Oncology is currently generating about 0.07 per unit of volatility. If you would invest  62.00  in Elevation Oncology on October 24, 2024 and sell it today you would earn a total of  9.00  from holding Elevation Oncology or generate 14.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

enGene Holdings Common  vs.  Elevation Oncology

enGene Holdings Common

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in enGene Holdings Common are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent technical and fundamental indicators, EnGene Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

Elevation Oncology

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Elevation Oncology are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting technical and fundamental indicators, Elevation Oncology showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EnGene Holdings and Elevation Oncology

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

The idea behind enGene Holdings Common and Elevation Oncology 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.

Check out your portfolio center.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.