Correlation Between Enerpac Tool and Omega Flex
Can any of the company-specific risk be diversified away by investing in both Enerpac Tool and Omega Flex 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 Enerpac Tool and Omega Flex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enerpac Tool Group and Omega Flex, you can compare the effects of market volatilities on Enerpac Tool and Omega Flex 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 Enerpac Tool with a short position of Omega Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enerpac Tool and Omega Flex.
Diversification Opportunities for Enerpac Tool and Omega Flex
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enerpac and Omega is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Enerpac Tool Group and Omega Flex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omega Flex and Enerpac Tool 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 Enerpac Tool Group are associated (or correlated) with Omega Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omega Flex has no effect on the direction of Enerpac Tool i.e., Enerpac Tool and Omega Flex go up and down completely randomly.
Pair Corralation between Enerpac Tool and Omega Flex
Given the investment horizon of 90 days Enerpac Tool Group is expected to generate 0.87 times more return on investment than Omega Flex. However, Enerpac Tool Group is 1.15 times less risky than Omega Flex. It trades about 0.02 of its potential returns per unit of risk. Omega Flex is currently generating about -0.15 per unit of risk. If you would invest 4,426 in Enerpac Tool Group on November 1, 2024 and sell it today you would earn a total of 65.00 from holding Enerpac Tool Group or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enerpac Tool Group vs. Omega Flex
Performance |
| Timeline |
| Enerpac Tool Group |
| Omega Flex |
Enerpac Tool and Omega Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enerpac Tool and Omega Flex
The main advantage of trading using opposite Enerpac Tool and Omega Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enerpac Tool position performs unexpectedly, Omega Flex 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 Omega Flex will offset losses from the drop in Omega Flex's long position.| Enerpac Tool vs. Omega Flex | Enerpac Tool vs. Luxfer Holdings PLC | Enerpac Tool vs. Gorman Rupp | Enerpac Tool vs. CSW Industrials |
| Omega Flex vs. Helios Technologies | Omega Flex vs. Enpro Industries | Omega Flex vs. Luxfer Holdings PLC | Omega Flex vs. Hurco Companies |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| 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 | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |