Correlation Between Enova International and Atlanticus Holdings
Can any of the company-specific risk be diversified away by investing in both Enova International and Atlanticus 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 Enova International and Atlanticus Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enova International and Atlanticus Holdings Corp, you can compare the effects of market volatilities on Enova International and Atlanticus 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 Enova International with a short position of Atlanticus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enova International and Atlanticus Holdings.
Diversification Opportunities for Enova International and Atlanticus Holdings
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enova and Atlanticus is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Enova International and Atlanticus Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlanticus Holdings Corp 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 Atlanticus Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlanticus Holdings Corp has no effect on the direction of Enova International i.e., Enova International and Atlanticus Holdings go up and down completely randomly.
Pair Corralation between Enova International and Atlanticus Holdings
Given the investment horizon of 90 days Enova International is expected to generate 2.31 times more return on investment than Atlanticus Holdings. However, Enova International is 2.31 times more volatile than Atlanticus Holdings Corp. It trades about 0.19 of its potential returns per unit of risk. Atlanticus Holdings Corp is currently generating about 0.09 per unit of risk. If you would invest 6,037 in Enova International on August 24, 2024 and sell it today you would earn a total of 4,165 from holding Enova International or generate 68.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enova International vs. Atlanticus Holdings Corp
Performance |
| Timeline |
| Enova International |
| Atlanticus Holdings Corp |
Enova International and Atlanticus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enova International and Atlanticus Holdings
The main advantage of trading using opposite Enova International and Atlanticus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enova International position performs unexpectedly, Atlanticus 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 Atlanticus Holdings will offset losses from the drop in Atlanticus Holdings' long position.| Enova International vs. Regional Management Corp | Enova International vs. Encore Capital Group | Enova International vs. Customers Bancorp | Enova International vs. Employers Holdings |
| Atlanticus Holdings vs. Babcock Wilcox Enterprises | Atlanticus Holdings vs. XOMA Corporation | Atlanticus Holdings vs. Brighthouse Financial | Atlanticus Holdings vs. Presidio Property Trust |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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