Correlation Between Model N and Enfusion
Can any of the company-specific risk be diversified away by investing in both Model N and Enfusion 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 Model N and Enfusion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Model N and Enfusion, you can compare the effects of market volatilities on Model N and Enfusion 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 Model N with a short position of Enfusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Model N and Enfusion.
Diversification Opportunities for Model N and Enfusion
Very weak diversification
The 3 months correlation between Model and Enfusion is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Model N and Enfusion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enfusion and Model N 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 Model N are associated (or correlated) with Enfusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enfusion has no effect on the direction of Model N i.e., Model N and Enfusion go up and down completely randomly.
Pair Corralation between Model N and Enfusion
If you would invest 829.00 in Enfusion on August 23, 2024 and sell it today you would earn a total of 181.00 from holding Enfusion or generate 21.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Model N vs. Enfusion
Performance |
| Timeline |
| Model N |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Enfusion |
Model N and Enfusion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Model N and Enfusion
The main advantage of trading using opposite Model N and Enfusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Model N position performs unexpectedly, Enfusion 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 Enfusion will offset losses from the drop in Enfusion's long position.The idea behind Model N and Enfusion 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.| Enfusion vs. ON24 Inc | Enfusion vs. Paycor HCM | Enfusion vs. E2open Parent Holdings | Enfusion vs. Braze Inc |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |