Correlation Between SPX Corp and Enerpac Tool
Can any of the company-specific risk be diversified away by investing in both SPX Corp and Enerpac Tool 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 SPX Corp and Enerpac Tool into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPX Corp and Enerpac Tool Group, you can compare the effects of market volatilities on SPX Corp and Enerpac Tool 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 SPX Corp with a short position of Enerpac Tool. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPX Corp and Enerpac Tool.
Diversification Opportunities for SPX Corp and Enerpac Tool
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPX and Enerpac is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding SPX Corp and Enerpac Tool Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerpac Tool Group and SPX Corp 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 SPX Corp are associated (or correlated) with Enerpac Tool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enerpac Tool Group has no effect on the direction of SPX Corp i.e., SPX Corp and Enerpac Tool go up and down completely randomly.
Pair Corralation between SPX Corp and Enerpac Tool
Given the investment horizon of 90 days SPX Corp is expected to generate 1.27 times more return on investment than Enerpac Tool. However, SPX Corp is 1.27 times more volatile than Enerpac Tool Group. It trades about 0.15 of its potential returns per unit of risk. Enerpac Tool Group is currently generating about 0.14 per unit of risk. If you would invest 15,925 in SPX Corp on August 30, 2024 and sell it today you would earn a total of 1,575 from holding SPX Corp or generate 9.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPX Corp vs. Enerpac Tool Group
Performance |
| Timeline |
| SPX Corp |
| Enerpac Tool Group |
SPX Corp and Enerpac Tool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPX Corp and Enerpac Tool
The main advantage of trading using opposite SPX Corp and Enerpac Tool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPX Corp position performs unexpectedly, Enerpac Tool 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 Enerpac Tool will offset losses from the drop in Enerpac Tool's long position.| SPX Corp vs. Standex International | SPX Corp vs. Enpro Industries | SPX Corp vs. Thermon Group Holdings | SPX Corp vs. Enerpac Tool Group |
| Enerpac Tool vs. Omega Flex | Enerpac Tool vs. Luxfer Holdings PLC | Enerpac Tool vs. Gorman Rupp | Enerpac Tool vs. John Bean Technologies |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |