Correlation Between Energix Renewable and Maytronics

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

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

Diversification Opportunities for Energix Renewable and Maytronics

-0.15

Correlation Coefficient

Energix Renewable  Maytronics

Good diversification

The 3 months correlation between Energix and Maytronics is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Energix Renewable Energies and Maytronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maytronics and Energix Renewable 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 Energix Renewable Energies are associated (or correlated) with Maytronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maytronics has no effect on the direction of Energix Renewable i.e., Energix Renewable and Maytronics go up and down completely randomly.

Pair Corralation between Energix Renewable and Maytronics

Assuming the 90 days trading horizon Energix Renewable Energies is expected to under-perform the Maytronics. But the stock apears to be less risky and, when comparing its historical volatility, Energix Renewable Energies is 2.17 times less risky than Maytronics. The stock trades about -0.06 of its potential returns per unit of risk. The Maytronics is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  104,888  in Maytronics on September 4, 2024 and sell it today you would lose (10,958) from holding Maytronics or give up 10.45% of portfolio value over 90 days.

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

Energix Renewable Energies  vs.  Maytronics

Energix Renewable

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Energix Renewable Energies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Maytronics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Maytronics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Energix Renewable and Maytronics

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

The idea behind Energix Renewable Energies and Maytronics 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 CEOs Directory module to screen CEOs from public companies around the world.