Correlation Between Ennogie Solar and Aquaporin
Can any of the company-specific risk be diversified away by investing in both Ennogie Solar and Aquaporin 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 Ennogie Solar and Aquaporin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ennogie Solar Group and Aquaporin AS, you can compare the effects of market volatilities on Ennogie Solar and Aquaporin 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 Ennogie Solar with a short position of Aquaporin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ennogie Solar and Aquaporin.
Diversification Opportunities for Ennogie Solar and Aquaporin
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ennogie and Aquaporin is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ennogie Solar Group and Aquaporin AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquaporin AS and Ennogie Solar 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 Ennogie Solar Group are associated (or correlated) with Aquaporin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquaporin AS has no effect on the direction of Ennogie Solar i.e., Ennogie Solar and Aquaporin go up and down completely randomly.
Pair Corralation between Ennogie Solar and Aquaporin
Assuming the 90 days trading horizon Ennogie Solar Group is expected to generate 0.87 times more return on investment than Aquaporin. However, Ennogie Solar Group is 1.15 times less risky than Aquaporin. It trades about -0.06 of its potential returns per unit of risk. Aquaporin AS is currently generating about -0.06 per unit of risk. If you would invest 2,230 in Ennogie Solar Group on September 12, 2024 and sell it today you would lose (1,466) from holding Ennogie Solar Group or give up 65.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ennogie Solar Group vs. Aquaporin AS
Performance |
| Timeline |
| Ennogie Solar Group |
| Aquaporin AS |
Ennogie Solar and Aquaporin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ennogie Solar and Aquaporin
The main advantage of trading using opposite Ennogie Solar and Aquaporin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ennogie Solar position performs unexpectedly, Aquaporin 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 Aquaporin will offset losses from the drop in Aquaporin's long position.| Ennogie Solar vs. Green Hydrogen Systems | Ennogie Solar vs. ALK Abell AS | Ennogie Solar vs. H Lundbeck AS | Ennogie Solar vs. TORM plc |
| Aquaporin vs. Green Hydrogen Systems | Aquaporin vs. FOM Technologies AS | Aquaporin vs. ALK Abell AS | Aquaporin vs. Trifork Holding AG |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |