Correlation Between Oneconnect Financial and Enfusion
Can any of the company-specific risk be diversified away by investing in both Oneconnect Financial 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 Oneconnect Financial and Enfusion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oneconnect Financial Technology and Enfusion, you can compare the effects of market volatilities on Oneconnect Financial 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 Oneconnect Financial with a short position of Enfusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oneconnect Financial and Enfusion.
Diversification Opportunities for Oneconnect Financial and Enfusion
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oneconnect and Enfusion is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Oneconnect Financial Technolog and Enfusion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enfusion and Oneconnect Financial 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 Oneconnect Financial Technology 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 Oneconnect Financial i.e., Oneconnect Financial and Enfusion go up and down completely randomly.
Pair Corralation between Oneconnect Financial and Enfusion
Given the investment horizon of 90 days Oneconnect Financial Technology is expected to generate 3.04 times more return on investment than Enfusion. However, Oneconnect Financial is 3.04 times more volatile than Enfusion. It trades about 0.02 of its potential returns per unit of risk. Enfusion is currently generating about 0.04 per unit of risk. If you would invest 350.00 in Oneconnect Financial Technology on August 27, 2024 and sell it today you would lose (119.00) from holding Oneconnect Financial Technology or give up 34.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oneconnect Financial Technolog vs. Enfusion
Performance |
| Timeline |
| Oneconnect Financial |
| Enfusion |
Oneconnect Financial and Enfusion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oneconnect Financial and Enfusion
The main advantage of trading using opposite Oneconnect Financial and Enfusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oneconnect Financial 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.| Oneconnect Financial vs. Trust Stamp | Oneconnect Financial vs. Amesite Operating Co | Oneconnect Financial vs. My Size | Oneconnect Financial vs. Kingsoft Cloud Holdings |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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