Correlation Between Enfusion and Kaspien Holdings
Can any of the company-specific risk be diversified away by investing in both Enfusion and Kaspien 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 Kaspien Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enfusion and Kaspien Holdings, you can compare the effects of market volatilities on Enfusion and Kaspien 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 Kaspien Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enfusion and Kaspien Holdings.
Diversification Opportunities for Enfusion and Kaspien Holdings
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enfusion and Kaspien is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Enfusion and Kaspien Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaspien 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 Kaspien Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaspien Holdings has no effect on the direction of Enfusion i.e., Enfusion and Kaspien Holdings go up and down completely randomly.
Pair Corralation between Enfusion and Kaspien Holdings
If you would invest 916.00 in Enfusion on August 29, 2024 and sell it today you would earn a total of 86.00 from holding Enfusion or generate 9.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Enfusion vs. Kaspien Holdings
Performance |
| Timeline |
| Enfusion |
| Kaspien Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Enfusion and Kaspien Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enfusion and Kaspien Holdings
The main advantage of trading using opposite Enfusion and Kaspien Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enfusion position performs unexpectedly, Kaspien 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 Kaspien Holdings will offset losses from the drop in Kaspien Holdings' long position.| Enfusion vs. ON24 Inc | Enfusion vs. Paycor HCM | Enfusion vs. E2open Parent Holdings | Enfusion vs. Braze Inc |
| Kaspien Holdings vs. Quoin Pharmaceuticals Ltd | Kaspien Holdings vs. Intelligent Living Application | Kaspien Holdings vs. Revelation Biosciences | Kaspien Holdings vs. Virax Biolabs Group |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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