Correlation Between Enfusion and Oneconnect Financial
Can any of the company-specific risk be diversified away by investing in both Enfusion and Oneconnect Financial 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 Oneconnect Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enfusion and Oneconnect Financial Technology, you can compare the effects of market volatilities on Enfusion and Oneconnect Financial 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 Oneconnect Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enfusion and Oneconnect Financial.
Diversification Opportunities for Enfusion and Oneconnect Financial
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Enfusion and Oneconnect is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Enfusion and Oneconnect Financial Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneconnect Financial 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 Oneconnect Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneconnect Financial has no effect on the direction of Enfusion i.e., Enfusion and Oneconnect Financial go up and down completely randomly.
Pair Corralation between Enfusion and Oneconnect Financial
Given the investment horizon of 90 days Enfusion is expected to generate 1.33 times less return on investment than Oneconnect Financial. But when comparing it to its historical volatility, Enfusion is 3.04 times less risky than Oneconnect Financial. It trades about 0.04 of its potential returns per unit of risk. Oneconnect Financial Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 350.00 in Oneconnect Financial Technology on August 27, 2024 and sell it today you would lose (119.00) from holding Oneconnect Financial Technology or give up 34.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enfusion vs. Oneconnect Financial Technolog
Performance |
| Timeline |
| Enfusion |
| Oneconnect Financial |
Enfusion and Oneconnect Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enfusion and Oneconnect Financial
The main advantage of trading using opposite Enfusion and Oneconnect Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enfusion position performs unexpectedly, Oneconnect Financial 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 Oneconnect Financial will offset losses from the drop in Oneconnect Financial's long position.| Enfusion vs. ON24 Inc | Enfusion vs. Paycor HCM | Enfusion vs. E2open Parent Holdings | Enfusion vs. Braze Inc |
| Oneconnect Financial vs. Trust Stamp | Oneconnect Financial vs. Amesite Operating Co | Oneconnect Financial vs. My Size | Oneconnect Financial vs. Kingsoft Cloud Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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