Correlation Between Horizon Kinetics and Enzon Pharmaceuticals

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

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

Diversification Opportunities for Horizon Kinetics and Enzon Pharmaceuticals

0.0

Correlation Coefficient

Horizon Kinetics  Enzon Pharmaceuticals

Pay attention - limited upside

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

Pair Corralation between Horizon Kinetics and Enzon Pharmaceuticals

Given the investment horizon of 90 days Horizon Kinetics Medical is expected to under-perform the Enzon Pharmaceuticals. But the etf apears to be less risky and, when comparing its historical volatility, Horizon Kinetics Medical is 7.1 times less risky than Enzon Pharmaceuticals. The etf trades about -0.02 of its potential returns per unit of risk. The Enzon Pharmaceuticals is currently generating about 0.0 of returns per unit of risk over similar time horizon. 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

Horizon Kinetics Medical  vs.  Enzon Pharmaceuticals

Horizon Kinetics Medical

Risk-Adjusted Performance

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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.

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.

Pair Trading with Horizon Kinetics and Enzon Pharmaceuticals

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

The idea behind Horizon Kinetics Medical and Enzon Pharmaceuticals 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.