Correlation Between Tefron and Enersys
Can any of the company-specific risk be diversified away by investing in both Tefron and Enersys 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 Tefron and Enersys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tefron and Enersys, you can compare the effects of market volatilities on Tefron and Enersys 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 Tefron with a short position of Enersys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tefron and Enersys.
Diversification Opportunities for Tefron and Enersys
Very weak diversification
The 3 months correlation between Tefron and Enersys is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Tefron and Enersys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enersys and Tefron 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 Tefron are associated (or correlated) with Enersys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enersys has no effect on the direction of Tefron i.e., Tefron and Enersys go up and down completely randomly.
Pair Corralation between Tefron and Enersys
If you would invest 9,191 in Enersys on September 4, 2024 and sell it today you would earn a total of 457.00 from holding Enersys or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Tefron vs. Enersys
Performance |
| Timeline |
| Tefron |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Enersys |
Tefron and Enersys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tefron and Enersys
The main advantage of trading using opposite Tefron and Enersys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tefron position performs unexpectedly, Enersys 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 Enersys will offset losses from the drop in Enersys' long position.| Tefron vs. Enersys | Tefron vs. Western Acquisition Ventures | Tefron vs. Electrovaya Common Shares | Tefron vs. Reservoir Media |
| Enersys vs. Advanced Energy Industries | Enersys vs. Hubbell | Enersys vs. Acuity Brands | Enersys vs. Kimball Electronics |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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