Correlation Between EzFill Holdings and Enfusion

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

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

Diversification Opportunities for EzFill Holdings and Enfusion

0.28

Correlation Coefficient

EzFill Holdings  Enfusion

Modest diversification

The 3 months correlation between EzFill and Enfusion is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding EzFill Holdings and Enfusion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enfusion and EzFill Holdings 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 EzFill Holdings are associated (or correlated) with Enfusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enfusion has no effect on the direction of EzFill Holdings i.e., EzFill Holdings and Enfusion go up and down completely randomly.

Pair Corralation between EzFill Holdings and Enfusion

Given the investment horizon of 90 days EzFill Holdings is expected to generate 4.17 times more return on investment than Enfusion. However, EzFill Holdings is 4.17 times more volatile than Enfusion. It trades about 0.12 of its potential returns per unit of risk. Enfusion is currently generating about 0.11 per unit of risk. If you would invest  250.00  in EzFill Holdings on December 4, 2024 and sell it today you would earn a total of  100.00  from holding EzFill Holdings or generate 40.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	81.67%
Values	Daily Returns

EzFill Holdings  vs.  Enfusion

EzFill Holdings

Risk-Adjusted Performance

OK

Over the last 90 days EzFill Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite conflicting technical and fundamental indicators, EzFill Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

Enfusion

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Enfusion are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Enfusion displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EzFill Holdings and Enfusion

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

The idea behind EzFill Holdings and Enfusion 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.