Correlation Between Enfusion and Grab Holdings
Can any of the company-specific risk be diversified away by investing in both Enfusion and Grab Holdings 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 Enfusion and Grab Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enfusion and Grab Holdings, you can compare the effects of market volatilities on Enfusion and Grab Holdings 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 Enfusion with a short position of Grab Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enfusion and Grab Holdings.
Diversification Opportunities for Enfusion and Grab Holdings
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Enfusion and Grab is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Enfusion and Grab Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grab Holdings and Enfusion 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 Enfusion are associated (or correlated) with Grab Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grab Holdings has no effect on the direction of Enfusion i.e., Enfusion and Grab Holdings go up and down completely randomly.
Pair Corralation between Enfusion and Grab Holdings
Given the investment horizon of 90 days Enfusion is expected to generate 1.04 times more return on investment than Grab Holdings. However, Enfusion is 1.04 times more volatile than Grab Holdings. It trades about 0.28 of its potential returns per unit of risk. Grab Holdings is currently generating about -0.04 per unit of risk. If you would invest 985.00 in Enfusion on November 2, 2024 and sell it today you would earn a total of 128.00 from holding Enfusion or generate 12.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enfusion vs. Grab Holdings
Performance |
| Timeline |
| Enfusion |
| Grab Holdings |
Enfusion and Grab Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enfusion and Grab Holdings
The main advantage of trading using opposite Enfusion and Grab Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enfusion position performs unexpectedly, Grab Holdings 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 Grab Holdings will offset losses from the drop in Grab Holdings' long position.| Enfusion vs. ON24 Inc | Enfusion vs. Paycor HCM | Enfusion vs. E2open Parent Holdings | Enfusion vs. Braze Inc |
| Grab Holdings vs. LYFT Inc | Grab Holdings vs. Kingsoft Cloud Holdings | Grab Holdings vs. AMTD Digital | Grab Holdings vs. Uber Technologies |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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