Correlation Between Enpro Industries and Intevac
Can any of the company-specific risk be diversified away by investing in both Enpro Industries and Intevac 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 Enpro Industries and Intevac into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enpro Industries and Intevac, you can compare the effects of market volatilities on Enpro Industries and Intevac 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 Enpro Industries with a short position of Intevac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enpro Industries and Intevac.
Diversification Opportunities for Enpro Industries and Intevac
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enpro and Intevac is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Enpro Industries and Intevac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intevac and Enpro Industries 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 Enpro Industries are associated (or correlated) with Intevac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intevac has no effect on the direction of Enpro Industries i.e., Enpro Industries and Intevac go up and down completely randomly.
Pair Corralation between Enpro Industries and Intevac
Considering the 90-day investment horizon Enpro Industries is expected to generate 0.77 times more return on investment than Intevac. However, Enpro Industries is 1.29 times less risky than Intevac. It trades about 0.06 of its potential returns per unit of risk. Intevac is currently generating about -0.05 per unit of risk. If you would invest 11,343 in Enpro Industries on August 27, 2024 and sell it today you would earn a total of 7,079 from holding Enpro Industries or generate 62.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enpro Industries vs. Intevac
Performance |
| Timeline |
| Enpro Industries |
| Intevac |
Enpro Industries and Intevac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enpro Industries and Intevac
The main advantage of trading using opposite Enpro Industries and Intevac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enpro Industries position performs unexpectedly, Intevac 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 Intevac will offset losses from the drop in Intevac's long position.| Enpro Industries vs. Helios Technologies | Enpro Industries vs. Omega Flex | Enpro Industries vs. Luxfer Holdings PLC | Enpro Industries vs. Hurco Companies |
| Intevac vs. D Wave Quantum | Intevac vs. Rigetti Computing | Intevac vs. Cricut Inc | Intevac vs. Quantum Computing |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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