Correlation Between Enovix Corp and Atkore International

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

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

Diversification Opportunities for Enovix Corp and Atkore International

-0.22

Correlation Coefficient

Enovix Corp  Atkore International

Very good diversification

The 3 months correlation between Enovix and Atkore is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Enovix Corp and Atkore International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atkore International and Enovix 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 Enovix Corp are associated (or correlated) with Atkore International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atkore International has no effect on the direction of Enovix Corp i.e., Enovix Corp and Atkore International go up and down completely randomly.

Pair Corralation between Enovix Corp and Atkore International

Given the investment horizon of 90 days Enovix Corp is expected to generate 2.07 times more return on investment than Atkore International. However, Enovix Corp is 2.07 times more volatile than Atkore International Group. It trades about -0.01 of its potential returns per unit of risk. Atkore International Group is currently generating about -0.11 per unit of risk. If you would invest  1,221  in Enovix Corp on September 15, 2024 and sell it today you would lose (323.00) from holding Enovix Corp or give up 26.45% of portfolio value over 90 days.

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

Enovix Corp  vs.  Atkore International Group

Enovix Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Enovix Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Enovix Corp is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Atkore International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atkore International Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking signals, Atkore International is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Enovix Corp and Atkore International

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

The idea behind Enovix Corp and Atkore International Group 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.