Correlation Between Enphase Energy and InTest
Can any of the company-specific risk be diversified away by investing in both Enphase Energy and InTest 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 Enphase Energy and InTest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enphase Energy and inTest, you can compare the effects of market volatilities on Enphase Energy and InTest 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 Enphase Energy with a short position of InTest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enphase Energy and InTest.
Diversification Opportunities for Enphase Energy and InTest
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enphase and InTest is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Enphase Energy and inTest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on inTest and Enphase Energy 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 Enphase Energy are associated (or correlated) with InTest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of inTest has no effect on the direction of Enphase Energy i.e., Enphase Energy and InTest go up and down completely randomly.
Pair Corralation between Enphase Energy and InTest
Given the investment horizon of 90 days Enphase Energy is expected to under-perform the InTest. In addition to that, Enphase Energy is 1.04 times more volatile than inTest. It trades about -0.07 of its total potential returns per unit of risk. inTest is currently generating about -0.04 per unit of volatility. If you would invest 1,168 in inTest on August 27, 2024 and sell it today you would lose (405.00) from holding inTest or give up 34.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enphase Energy vs. inTest
Performance |
| Timeline |
| Enphase Energy |
| inTest |
Enphase Energy and InTest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enphase Energy and InTest
The main advantage of trading using opposite Enphase Energy and InTest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enphase Energy position performs unexpectedly, InTest 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 InTest will offset losses from the drop in InTest's long position.The idea behind Enphase Energy and inTest pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| InTest vs. Axcelis Technologies | InTest vs. Lam Research Corp | InTest vs. Photronics | InTest vs. indie Semiconductor |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |