Correlation Between Thule Group and Enad Global

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

By analyzing existing cross correlation between Thule Group AB and Enad Global 7, you can compare the effects of market volatilities on Thule Group and Enad Global 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 Thule Group with a short position of Enad Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thule Group and Enad Global.

Diversification Opportunities for Thule Group and Enad Global

0.05

Correlation Coefficient

Thule Group  Enad Global

Significant diversification

The 3 months correlation between Thule and Enad is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Thule Group AB and Enad Global 7 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enad Global 7 and Thule Group 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 Thule Group AB are associated (or correlated) with Enad Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enad Global 7 has no effect on the direction of Thule Group i.e., Thule Group and Enad Global go up and down completely randomly.

Pair Corralation between Thule Group and Enad Global

Assuming the 90 days trading horizon Thule Group AB is expected to generate 0.71 times more return on investment than Enad Global. However, Thule Group AB is 1.42 times less risky than Enad Global. It trades about -0.14 of its potential returns per unit of risk. Enad Global 7 is currently generating about -0.21 per unit of risk. If you would invest  34,160  in Thule Group AB on December 29, 2024 and sell it today you would lose (4,900) from holding Thule Group AB or give up 14.34% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Thule Group AB  vs.  Enad Global 7

Thule Group AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Thule Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Enad Global 7

Risk-Adjusted Performance

Very Weak

Over the last 90 days Enad Global 7 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Thule Group and Enad Global

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

The idea behind Thule Group AB and Enad Global 7 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.