Correlation Between ENF Technology and PH Tech
Can any of the company-specific risk be diversified away by investing in both ENF Technology and PH Tech 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 ENF Technology and PH Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENF Technology Co and PH Tech Co, you can compare the effects of market volatilities on ENF Technology and PH Tech 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 ENF Technology with a short position of PH Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENF Technology and PH Tech.
Diversification Opportunities for ENF Technology and PH Tech
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ENF and 239890 is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding ENF Technology Co and PH Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PH Tech and ENF Technology 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 ENF Technology Co are associated (or correlated) with PH Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PH Tech has no effect on the direction of ENF Technology i.e., ENF Technology and PH Tech go up and down completely randomly.
Pair Corralation between ENF Technology and PH Tech
Assuming the 90 days trading horizon ENF Technology Co is expected to generate 0.95 times more return on investment than PH Tech. However, ENF Technology Co is 1.06 times less risky than PH Tech. It trades about 0.2 of its potential returns per unit of risk. PH Tech Co is currently generating about 0.05 per unit of risk. If you would invest 1,586,193 in ENF Technology Co on October 30, 2024 and sell it today you would earn a total of 458,807 from holding ENF Technology Co or generate 28.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ENF Technology Co vs. PH Tech Co
Performance |
| Timeline |
| ENF Technology |
| PH Tech |
ENF Technology and PH Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENF Technology and PH Tech
The main advantage of trading using opposite ENF Technology and PH Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENF Technology position performs unexpectedly, PH Tech 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 PH Tech will offset losses from the drop in PH Tech's long position.| ENF Technology vs. LG Chemicals | ENF Technology vs. POSCO Holdings | ENF Technology vs. Hanwha Solutions | ENF Technology vs. Lotte Chemical Corp |
| PH Tech vs. Hanwha Life Insurance | PH Tech vs. Daishin Information Communications | PH Tech vs. Nice Information Telecommunication | PH Tech vs. ECSTELECOM Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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