Correlation Between Enerpac Tool and EXELON

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Enerpac Tool and EXELON 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 EXELON 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 EXELON P 51, you can compare the effects of market volatilities on Enerpac Tool and EXELON 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 EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enerpac Tool and EXELON.

Diversification Opportunities for Enerpac Tool and EXELON

0.34
  Correlation Coefficient

Weak diversification

The 3 months correlation between Enerpac and EXELON is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Enerpac Tool Group and EXELON P 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON P 51 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 EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON P 51 has no effect on the direction of Enerpac Tool i.e., Enerpac Tool and EXELON go up and down completely randomly.

Pair Corralation between Enerpac Tool and EXELON

Given the investment horizon of 90 days Enerpac Tool Group is expected to generate 1.13 times more return on investment than EXELON. However, Enerpac Tool is 1.13 times more volatile than EXELON P 51. It trades about 0.19 of its potential returns per unit of risk. EXELON P 51 is currently generating about 0.03 per unit of risk. If you would invest  4,367  in Enerpac Tool Group on November 28, 2024 and sell it today you would earn a total of  236.50  from holding Enerpac Tool Group or generate 5.42% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy86.36%
ValuesDaily Returns

Enerpac Tool Group  vs.  EXELON P 51

 Performance 
       Timeline  
Enerpac Tool Group 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Enerpac Tool Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Enerpac Tool is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
EXELON P 51 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days EXELON P 51 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, EXELON is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Enerpac Tool and EXELON Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Enerpac Tool and EXELON

The main advantage of trading using opposite Enerpac Tool and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enerpac Tool position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON's long position.
Enerpac Tool vs. Omega Flex
Enerpac Tool vs. Luxfer Holdings PLC
Enerpac Tool vs. Gorman Rupp
Enerpac Tool vs. CSW Industrials
The idea behind Enerpac Tool Group and EXELON P 51 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.
EXELON vs. Amkor Technology
EXELON vs. FARO Technologies
EXELON vs. Western Digital
EXELON vs. The Coca Cola
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

Other Complementary Tools

Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY