Correlation Between N2OFF and Enlightify

Can any of the company-specific risk be diversified away by investing in both N2OFF and Enlightify 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 N2OFF and Enlightify into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between N2OFF Inc and Enlightify, you can compare the effects of market volatilities on N2OFF and Enlightify 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 N2OFF with a short position of Enlightify. Check out your portfolio center. Please also check ongoing floating volatility patterns of N2OFF and Enlightify.

Diversification Opportunities for N2OFF and Enlightify

-0.07

Correlation Coefficient

N2OFF  Enlightify

Good diversification

The 3 months correlation between N2OFF and Enlightify is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding N2OFF Inc and Enlightify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enlightify and N2OFF 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 N2OFF Inc are associated (or correlated) with Enlightify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enlightify has no effect on the direction of N2OFF i.e., N2OFF and Enlightify go up and down completely randomly.

Pair Corralation between N2OFF and Enlightify

Given the investment horizon of 90 days N2OFF Inc is expected to generate 3.05 times more return on investment than Enlightify. However, N2OFF is 3.05 times more volatile than Enlightify. It trades about 0.03 of its potential returns per unit of risk. Enlightify is currently generating about -0.02 per unit of risk. If you would invest  784.00  in N2OFF Inc on October 10, 2024 and sell it today you would lose (647.00) from holding N2OFF Inc or give up 82.53% of portfolio value over 90 days.

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

N2OFF Inc  vs.  Enlightify

N2OFF Inc

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in N2OFF Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, N2OFF displayed solid returns over the last few months and may actually be approaching a breakup point.

Enlightify

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Enlightify has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and 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 company investors.

Pair Trading with N2OFF and Enlightify

The main advantage of trading using opposite N2OFF and Enlightify positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N2OFF position performs unexpectedly, Enlightify 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 Enlightify will offset losses from the drop in Enlightify's long position.

The idea behind N2OFF Inc and Enlightify 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.