Correlation Between ENELIM and Bill

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

By analyzing existing cross correlation between ENELIM 2875 12 JUL 41 and Bill Com Holdings, you can compare the effects of market volatilities on ENELIM and Bill 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 ENELIM with a short position of Bill. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENELIM and Bill.

Diversification Opportunities for ENELIM and Bill

0.22

Correlation Coefficient

ENELIM  Bill

Modest diversification

The 3 months correlation between ENELIM and Bill is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding ENELIM 2875 12 JUL 41 and Bill Com Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bill Com Holdings and ENELIM 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 ENELIM 2875 12 JUL 41 are associated (or correlated) with Bill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bill Com Holdings has no effect on the direction of ENELIM i.e., ENELIM and Bill go up and down completely randomly.

Pair Corralation between ENELIM and Bill

Assuming the 90 days trading horizon ENELIM is expected to generate 1.28 times less return on investment than Bill. But when comparing it to its historical volatility, ENELIM 2875 12 JUL 41 is 2.87 times less risky than Bill. It trades about 0.03 of its potential returns per unit of risk. Bill Com Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  9,698  in Bill Com Holdings on September 26, 2024 and sell it today you would lose (994.00) from holding Bill Com Holdings or give up 10.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	43.75%
Values	Daily Returns

ENELIM 2875 12 JUL 41  vs.  Bill Com Holdings

ENELIM 2875 12

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ENELIM 2875 12 JUL 41 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for ENELIM 2875 12 JUL 41 investors.

Bill Com Holdings

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bill Com Holdings are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain essential indicators, Bill disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ENELIM and Bill

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

The idea behind ENELIM 2875 12 JUL 41 and Bill Com Holdings 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.