Correlation Between American Films and Enovix Corp
Can any of the company-specific risk be diversified away by investing in both American Films and Enovix Corp 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 American Films and Enovix Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Films and Enovix Corp, you can compare the effects of market volatilities on American Films and Enovix Corp 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 American Films with a short position of Enovix Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Films and Enovix Corp.
Diversification Opportunities for American Films and Enovix Corp
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Enovix is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding American Films and Enovix Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enovix Corp and American Films 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 American Films are associated (or correlated) with Enovix Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enovix Corp has no effect on the direction of American Films i.e., American Films and Enovix Corp go up and down completely randomly.
Pair Corralation between American Films and Enovix Corp
Given the investment horizon of 90 days American Films is expected to under-perform the Enovix Corp. In addition to that, American Films is 1.88 times more volatile than Enovix Corp. It trades about -0.06 of its total potential returns per unit of risk. Enovix Corp is currently generating about 0.0 per unit of volatility. If you would invest 1,246 in Enovix Corp on November 5, 2024 and sell it today you would lose (40.00) from holding Enovix Corp or give up 3.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
American Films vs. Enovix Corp
Performance |
| Timeline |
| American Films |
| Enovix Corp |
American Films and Enovix Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Films and Enovix Corp
The main advantage of trading using opposite American Films and Enovix Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Films position performs unexpectedly, Enovix Corp 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 Enovix Corp will offset losses from the drop in Enovix Corp's long position.| American Films vs. American Picture House | American Films vs. Anghami Warrants | American Films vs. Aftermaster | American Films vs. Maxx Sports TV |
| Enovix Corp vs. ESS Tech | Enovix Corp vs. FREYR Battery SA | Enovix Corp vs. Microvast Holdings | Enovix Corp vs. Eos Energy Enterprises |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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