Correlation Between Growth Fund and Enphase Energy
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Enphase 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 Growth Fund and Enphase Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Enphase Energy, you can compare the effects of market volatilities on Growth Fund and Enphase 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 Growth Fund with a short position of Enphase Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Enphase Energy.
Diversification Opportunities for Growth Fund and Enphase Energy
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Growth and Enphase is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Enphase Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enphase Energy and Growth Fund 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 Growth Fund Of are associated (or correlated) with Enphase Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enphase Energy has no effect on the direction of Growth Fund i.e., Growth Fund and Enphase Energy go up and down completely randomly.
Pair Corralation between Growth Fund and Enphase Energy
Assuming the 90 days horizon Growth Fund Of is expected to generate 0.19 times more return on investment than Enphase Energy. However, Growth Fund Of is 5.18 times less risky than Enphase Energy. It trades about 0.16 of its potential returns per unit of risk. Enphase Energy is currently generating about -0.16 per unit of risk. If you would invest 7,842 in Growth Fund Of on August 24, 2024 and sell it today you would earn a total of 275.00 from holding Growth Fund Of or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Fund Of vs. Enphase Energy
Performance |
| Timeline |
| Growth Fund |
| Enphase Energy |
Growth Fund and Enphase Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Enphase Energy
The main advantage of trading using opposite Growth Fund and Enphase Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Enphase 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 Enphase Energy will offset losses from the drop in Enphase Energy's long position.| Growth Fund vs. Europacific Growth Fund | Growth Fund vs. Washington Mutual Investors | Growth Fund vs. ABIVAX Socit Anonyme | Growth Fund vs. SCOR PK |
| Enphase Energy vs. Small Cap Core | Enphase Energy vs. Freedom Holding Corp | Enphase Energy vs. Gfl Environmental Holdings | Enphase Energy vs. Growth Fund Of |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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