Correlation Between Genel Energy and Enwell Energy
Can any of the company-specific risk be diversified away by investing in both Genel Energy and Enwell Energy 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 Genel Energy and Enwell Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genel Energy plc and Enwell Energy plc, you can compare the effects of market volatilities on Genel Energy and Enwell Energy 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 Genel Energy with a short position of Enwell Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genel Energy and Enwell Energy.
Diversification Opportunities for Genel Energy and Enwell Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genel and Enwell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genel Energy plc and Enwell Energy plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enwell Energy plc and Genel Energy 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 Genel Energy plc are associated (or correlated) with Enwell Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enwell Energy plc has no effect on the direction of Genel Energy i.e., Genel Energy and Enwell Energy go up and down completely randomly.
Pair Corralation between Genel Energy and Enwell Energy
If you would invest 24.00 in Enwell Energy plc on December 23, 2024 and sell it today you would earn a total of 0.00 from holding Enwell Energy plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genel Energy plc vs. Enwell Energy plc
Performance |
| Timeline |
| Genel Energy plc |
| Enwell Energy plc |
Genel Energy and Enwell Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genel Energy and Enwell Energy
The main advantage of trading using opposite Genel Energy and Enwell Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genel Energy position performs unexpectedly, Enwell Energy 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 Enwell Energy will offset losses from the drop in Enwell Energy's long position.| Genel Energy vs. MV Oil Trust | Genel Energy vs. North European Oil | Genel Energy vs. Permianville Royalty Trust | Genel Energy vs. Cross Timbers Royalty |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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