Correlation Between Enovis Corp and Graham
Can any of the company-specific risk be diversified away by investing in both Enovis Corp and Graham 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 Enovis Corp and Graham into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enovis Corp and Graham, you can compare the effects of market volatilities on Enovis Corp and Graham 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 Enovis Corp with a short position of Graham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enovis Corp and Graham.
Diversification Opportunities for Enovis Corp and Graham
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enovis and Graham is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Enovis Corp and Graham in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham and Enovis Corp 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 Enovis Corp are associated (or correlated) with Graham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham has no effect on the direction of Enovis Corp i.e., Enovis Corp and Graham go up and down completely randomly.
Pair Corralation between Enovis Corp and Graham
Given the investment horizon of 90 days Enovis Corp is expected to generate 0.53 times more return on investment than Graham. However, Enovis Corp is 1.88 times less risky than Graham. It trades about -0.2 of its potential returns per unit of risk. Graham is currently generating about -0.11 per unit of risk. If you would invest 4,933 in Enovis Corp on December 1, 2024 and sell it today you would lose (1,068) from holding Enovis Corp or give up 21.65% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Enovis Corp vs. Graham
Performance |
Timeline |
Enovis Corp |
Graham |
Enovis Corp and Graham Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Enovis Corp and Graham
The main advantage of trading using opposite Enovis Corp and Graham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enovis Corp position performs unexpectedly, Graham 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 Graham will offset losses from the drop in Graham's long position.Enovis Corp vs. Helios Technologies | Enovis Corp vs. Enpro Industries | Enovis Corp vs. Omega Flex | Enovis Corp vs. Luxfer Holdings PLC |
Graham vs. Luxfer Holdings PLC | Graham vs. Enerpac Tool Group | Graham vs. Kadant Inc | Graham vs. Omega Flex |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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