Correlation Between Eneos Holdings and Eni SpA
Can any of the company-specific risk be diversified away by investing in both Eneos Holdings and Eni SpA 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 Eneos Holdings and Eni SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eneos Holdings ADR and Eni SpA, you can compare the effects of market volatilities on Eneos Holdings and Eni SpA 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 Eneos Holdings with a short position of Eni SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eneos Holdings and Eni SpA.
Diversification Opportunities for Eneos Holdings and Eni SpA
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eneos and Eni is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Eneos Holdings ADR and Eni SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eni SpA and Eneos Holdings 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 Eneos Holdings ADR are associated (or correlated) with Eni SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eni SpA has no effect on the direction of Eneos Holdings i.e., Eneos Holdings and Eni SpA go up and down completely randomly.
Pair Corralation between Eneos Holdings and Eni SpA
Assuming the 90 days horizon Eneos Holdings is expected to generate 1.25 times less return on investment than Eni SpA. In addition to that, Eneos Holdings is 3.23 times more volatile than Eni SpA. It trades about 0.07 of its total potential returns per unit of risk. Eni SpA is currently generating about 0.27 per unit of volatility. If you would invest 1,316 in Eni SpA on October 24, 2024 and sell it today you would earn a total of 163.00 from holding Eni SpA or generate 12.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eneos Holdings ADR vs. Eni SpA
Performance |
| Timeline |
| Eneos Holdings ADR |
| Eni SpA |
Eneos Holdings and Eni SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eneos Holdings and Eni SpA
The main advantage of trading using opposite Eneos Holdings and Eni SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eneos Holdings position performs unexpectedly, Eni SpA 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 Eni SpA will offset losses from the drop in Eni SpA's long position.| Eneos Holdings vs. Idemitsu Kosan CoLtd | Eneos Holdings vs. HF Sinclair Corp | Eneos Holdings vs. Idemitsu Kosan Co | Eneos Holdings vs. PBF Energy |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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