Correlation Between Enzon Pharmaceuticals and Horizon Kinetics

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

By analyzing existing cross correlation between Enzon Pharmaceuticals and Horizon Kinetics Medical, you can compare the effects of market volatilities on Enzon Pharmaceuticals and Horizon Kinetics 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 Enzon Pharmaceuticals with a short position of Horizon Kinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enzon Pharmaceuticals and Horizon Kinetics.

Diversification Opportunities for Enzon Pharmaceuticals and Horizon Kinetics

0.0

Correlation Coefficient

Enzon Pharmaceuticals  Horizon Kinetics

Pay attention - limited upside

The 3 months correlation between Enzon and Horizon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Enzon Pharmaceuticals and Horizon Kinetics Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Kinetics Medical and Enzon Pharmaceuticals 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 Enzon Pharmaceuticals are associated (or correlated) with Horizon Kinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Kinetics Medical has no effect on the direction of Enzon Pharmaceuticals i.e., Enzon Pharmaceuticals and Horizon Kinetics go up and down completely randomly.

Pair Corralation between Enzon Pharmaceuticals and Horizon Kinetics

Given the investment horizon of 90 days Enzon Pharmaceuticals is expected to generate 7.1 times more return on investment than Horizon Kinetics. However, Enzon Pharmaceuticals is 7.1 times more volatile than Horizon Kinetics Medical. It trades about 0.0 of its potential returns per unit of risk. Horizon Kinetics Medical is currently generating about -0.02 per unit of risk. If you would invest  26.00  in Enzon Pharmaceuticals on October 12, 2024 and sell it today you would lose (6.00) from holding Enzon Pharmaceuticals or give up 23.08% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	25.97%
Values	Daily Returns

Enzon Pharmaceuticals  vs.  Horizon Kinetics Medical

Enzon Pharmaceuticals

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Enzon Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Enzon Pharmaceuticals is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Horizon Kinetics Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Horizon Kinetics Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Etf's fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the ETF investors.

Pair Trading with Enzon Pharmaceuticals and Horizon Kinetics

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

The idea behind Enzon Pharmaceuticals and Horizon Kinetics Medical 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.