Correlation Between EN Shoham and Enlight Renewable
Can any of the company-specific risk be diversified away by investing in both EN Shoham and Enlight Renewable 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 EN Shoham and Enlight Renewable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EN Shoham Business and Enlight Renewable Energy, you can compare the effects of market volatilities on EN Shoham and Enlight Renewable 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 EN Shoham with a short position of Enlight Renewable. Check out your portfolio center. Please also check ongoing floating volatility patterns of EN Shoham and Enlight Renewable.
Diversification Opportunities for EN Shoham and Enlight Renewable
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SHOM and Enlight is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding EN Shoham Business and Enlight Renewable Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enlight Renewable Energy and EN Shoham 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 EN Shoham Business are associated (or correlated) with Enlight Renewable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enlight Renewable Energy has no effect on the direction of EN Shoham i.e., EN Shoham and Enlight Renewable go up and down completely randomly.
Pair Corralation between EN Shoham and Enlight Renewable
Assuming the 90 days trading horizon EN Shoham Business is expected to under-perform the Enlight Renewable. But the stock apears to be less risky and, when comparing its historical volatility, EN Shoham Business is 1.79 times less risky than Enlight Renewable. The stock trades about -0.03 of its potential returns per unit of risk. The Enlight Renewable Energy is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 580,900 in Enlight Renewable Energy on November 27, 2024 and sell it today you would earn a total of 27,300 from holding Enlight Renewable Energy or generate 4.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EN Shoham Business vs. Enlight Renewable Energy
Performance |
| Timeline |
| EN Shoham Business |
| Enlight Renewable Energy |
EN Shoham and Enlight Renewable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EN Shoham and Enlight Renewable
The main advantage of trading using opposite EN Shoham and Enlight Renewable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EN Shoham position performs unexpectedly, Enlight Renewable 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 Enlight Renewable will offset losses from the drop in Enlight Renewable's long position.| EN Shoham vs. Menif Financial Services | EN Shoham vs. Accel Solutions Group | EN Shoham vs. Rani Zim Shopping | EN Shoham vs. Mivtach Shamir |
| Enlight Renewable vs. Energix Renewable Energies | Enlight Renewable vs. Doral Group Renewable | Enlight Renewable vs. Elbit Systems | Enlight Renewable vs. Electreon Wireless |
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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