Correlation Between Fonar and Enzo Biochem
Can any of the company-specific risk be diversified away by investing in both Fonar and Enzo Biochem 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 Fonar and Enzo Biochem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fonar and Enzo Biochem, you can compare the effects of market volatilities on Fonar and Enzo Biochem 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 Fonar with a short position of Enzo Biochem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonar and Enzo Biochem.
Diversification Opportunities for Fonar and Enzo Biochem
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fonar and Enzo is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Fonar and Enzo Biochem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enzo Biochem and Fonar 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 Fonar are associated (or correlated) with Enzo Biochem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enzo Biochem has no effect on the direction of Fonar i.e., Fonar and Enzo Biochem go up and down completely randomly.
Pair Corralation between Fonar and Enzo Biochem
Given the investment horizon of 90 days Fonar is expected to generate 0.42 times more return on investment than Enzo Biochem. However, Fonar is 2.39 times less risky than Enzo Biochem. It trades about 0.01 of its potential returns per unit of risk. Enzo Biochem is currently generating about 0.0 per unit of risk. If you would invest 1,671 in Fonar on November 1, 2024 and sell it today you would lose (88.00) from holding Fonar or give up 5.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fonar vs. Enzo Biochem
Performance |
| Timeline |
| Fonar |
| Enzo Biochem |
Fonar and Enzo Biochem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fonar and Enzo Biochem
The main advantage of trading using opposite Fonar and Enzo Biochem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonar position performs unexpectedly, Enzo Biochem 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 Enzo Biochem will offset losses from the drop in Enzo Biochem's long position.| Fonar vs. Burning Rock Biotech | Fonar vs. Sera Prognostics | Fonar vs. Exagen Inc | Fonar vs. Castle Biosciences |
| Enzo Biochem vs. Fonar | Enzo Biochem vs. Burning Rock Biotech | Enzo Biochem vs. Sera Prognostics | Enzo Biochem vs. DarioHealth Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |