Correlation Between Enegex NL and Pointsbet Holdings

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

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

Diversification Opportunities for Enegex NL and Pointsbet Holdings

-0.71

Correlation Coefficient

Enegex NL  Pointsbet Holdings

Pay attention - limited upside

The 3 months correlation between Enegex and Pointsbet is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Enegex NL and Pointsbet Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pointsbet Holdings and Enegex NL 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 Enegex NL are associated (or correlated) with Pointsbet Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pointsbet Holdings has no effect on the direction of Enegex NL i.e., Enegex NL and Pointsbet Holdings go up and down completely randomly.

Pair Corralation between Enegex NL and Pointsbet Holdings

Assuming the 90 days trading horizon Enegex NL is expected to generate 48.23 times less return on investment than Pointsbet Holdings. In addition to that, Enegex NL is 1.52 times more volatile than Pointsbet Holdings. It trades about 0.0 of its total potential returns per unit of risk. Pointsbet Holdings is currently generating about 0.2 per unit of volatility. If you would invest  69.00  in Pointsbet Holdings on September 23, 2024 and sell it today you would earn a total of  33.00  from holding Pointsbet Holdings or generate 47.83% return on investment over 90 days.

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

Enegex NL  vs.  Pointsbet Holdings

Enegex NL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Enegex NL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Enegex NL is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pointsbet Holdings

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pointsbet Holdings are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical indicators, Pointsbet Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Enegex NL and Pointsbet Holdings

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

The idea behind Enegex NL and Pointsbet Holdings 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.