Correlation Between Enlight Renewable and Nice
Can any of the company-specific risk be diversified away by investing in both Enlight Renewable and Nice 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 Enlight Renewable and Nice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enlight Renewable Energy and Nice, you can compare the effects of market volatilities on Enlight Renewable and Nice 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 Enlight Renewable with a short position of Nice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enlight Renewable and Nice.
Diversification Opportunities for Enlight Renewable and Nice
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enlight and Nice is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Enlight Renewable Energy and Nice in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nice and Enlight Renewable 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 Enlight Renewable Energy are associated (or correlated) with Nice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nice has no effect on the direction of Enlight Renewable i.e., Enlight Renewable and Nice go up and down completely randomly.
Pair Corralation between Enlight Renewable and Nice
Assuming the 90 days trading horizon Enlight Renewable Energy is expected to generate 0.49 times more return on investment than Nice. However, Enlight Renewable Energy is 2.03 times less risky than Nice. It trades about 0.06 of its potential returns per unit of risk. Nice is currently generating about 0.01 per unit of risk. If you would invest 595,000 in Enlight Renewable Energy on September 1, 2024 and sell it today you would earn a total of 11,600 from holding Enlight Renewable Energy or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enlight Renewable Energy vs. Nice
Performance |
| Timeline |
| Enlight Renewable Energy |
| Nice |
Enlight Renewable and Nice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enlight Renewable and Nice
The main advantage of trading using opposite Enlight Renewable and Nice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enlight Renewable position performs unexpectedly, Nice 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 Nice will offset losses from the drop in Nice's long position.| Enlight Renewable vs. Energix Renewable Energies | Enlight Renewable vs. Doral Group Renewable | Enlight Renewable vs. Elbit Systems | Enlight Renewable vs. Electreon Wireless |
| Nice vs. Elbit Systems | Nice vs. Tower Semiconductor | Nice vs. Bank Leumi Le Israel | Nice vs. Teva Pharmaceutical Industries |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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