Correlation Between ENF Technology and Seah Steel
Can any of the company-specific risk be diversified away by investing in both ENF Technology and Seah Steel 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 Seah Steel 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 Seah Steel Corp, you can compare the effects of market volatilities on ENF Technology and Seah Steel 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 Seah Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENF Technology and Seah Steel.
Diversification Opportunities for ENF Technology and Seah Steel
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between ENF and Seah is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding ENF Technology Co and Seah Steel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seah Steel Corp 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 Seah Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seah Steel Corp has no effect on the direction of ENF Technology i.e., ENF Technology and Seah Steel go up and down completely randomly.
Pair Corralation between ENF Technology and Seah Steel
Assuming the 90 days trading horizon ENF Technology Co is expected to generate 2.02 times more return on investment than Seah Steel. However, ENF Technology is 2.02 times more volatile than Seah Steel Corp. It trades about 0.24 of its potential returns per unit of risk. Seah Steel Corp is currently generating about 0.0 per unit of risk. If you would invest 1,507,432 in ENF Technology Co on October 11, 2024 and sell it today you would earn a total of 567,568 from holding ENF Technology Co or generate 37.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ENF Technology Co vs. Seah Steel Corp
Performance |
| Timeline |
| ENF Technology |
| Seah Steel Corp |
ENF Technology and Seah Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENF Technology and Seah Steel
The main advantage of trading using opposite ENF Technology and Seah Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENF Technology position performs unexpectedly, Seah Steel 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 Seah Steel will offset losses from the drop in Seah Steel's long position.| ENF Technology vs. Dongjin Semichem Co | ENF Technology vs. SS TECH | ENF Technology vs. Tokai Carbon Korea | ENF Technology vs. Soulbrain Holdings Co |
| Seah Steel vs. Hyundai Home Shopping | Seah Steel vs. Asia Technology Co | Seah Steel vs. ENF Technology Co | Seah Steel vs. Ilji Technology 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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