Correlation Between Symbotic and Enerpac Tool

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

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

Diversification Opportunities for Symbotic and Enerpac Tool

0.05

Correlation Coefficient

Symbotic  Enerpac Tool

Significant diversification

The 3 months correlation between Symbotic and Enerpac is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Symbotic and Enerpac Tool Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerpac Tool Group and Symbotic 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 Symbotic are associated (or correlated) with Enerpac Tool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enerpac Tool Group has no effect on the direction of Symbotic i.e., Symbotic and Enerpac Tool go up and down completely randomly.

Pair Corralation between Symbotic and Enerpac Tool

Considering the 90-day investment horizon Symbotic is expected to under-perform the Enerpac Tool. In addition to that, Symbotic is 2.77 times more volatile than Enerpac Tool Group. It trades about -0.01 of its total potential returns per unit of risk. Enerpac Tool Group is currently generating about 0.09 per unit of volatility. If you would invest  4,139  in Enerpac Tool Group on December 28, 2024 and sell it today you would earn a total of  412.00  from holding Enerpac Tool Group or generate 9.95% return on investment over 90 days.

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

Symbotic  vs.  Enerpac Tool Group

Symbotic

Risk-Adjusted Performance

Very Weak

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

Enerpac Tool Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Enerpac Tool Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Enerpac Tool may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Symbotic and Enerpac Tool

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

The idea behind Symbotic and Enerpac Tool Group 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.