Correlation Between Enova International and ASA Gold
Can any of the company-specific risk be diversified away by investing in both Enova International and ASA Gold 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 Enova International and ASA Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enova International and ASA Gold and, you can compare the effects of market volatilities on Enova International and ASA Gold 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 Enova International with a short position of ASA Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enova International and ASA Gold.
Diversification Opportunities for Enova International and ASA Gold
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enova and ASA is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Enova International and ASA Gold and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASA Gold and Enova International 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 Enova International are associated (or correlated) with ASA Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASA Gold has no effect on the direction of Enova International i.e., Enova International and ASA Gold go up and down completely randomly.
Pair Corralation between Enova International and ASA Gold
Given the investment horizon of 90 days Enova International is expected to under-perform the ASA Gold. In addition to that, Enova International is 1.05 times more volatile than ASA Gold and. It trades about -0.03 of its total potential returns per unit of risk. ASA Gold and is currently generating about 0.02 per unit of volatility. If you would invest 2,017 in ASA Gold and on September 20, 2024 and sell it today you would earn a total of 11.00 from holding ASA Gold and or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enova International vs. ASA Gold and
Performance |
| Timeline |
| Enova International |
| ASA Gold |
Enova International and ASA Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enova International and ASA Gold
The main advantage of trading using opposite Enova International and ASA Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enova International position performs unexpectedly, ASA Gold 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 ASA Gold will offset losses from the drop in ASA Gold's long position.| Enova International vs. Visa Class A | Enova International vs. PayPal Holdings | Enova International vs. Mastercard |
| ASA Gold vs. AngloGold Ashanti plc | ASA Gold vs. Sprott Physical Gold | ASA Gold vs. Gold Fields Ltd | ASA Gold vs. Harmony Gold Mining |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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