Correlation Between ENN Energy and Superior Plus
Can any of the company-specific risk be diversified away by investing in both ENN Energy and Superior Plus 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 ENN Energy and Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENN Energy Holdings and Superior Plus Corp, you can compare the effects of market volatilities on ENN Energy and Superior Plus 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 ENN Energy with a short position of Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENN Energy and Superior Plus.
Diversification Opportunities for ENN Energy and Superior Plus
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ENN and Superior is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding ENN Energy Holdings and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp and ENN Energy 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 ENN Energy Holdings are associated (or correlated) with Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of ENN Energy i.e., ENN Energy and Superior Plus go up and down completely randomly.
Pair Corralation between ENN Energy and Superior Plus
Assuming the 90 days horizon ENN Energy Holdings is expected to generate 1.31 times more return on investment than Superior Plus. However, ENN Energy is 1.31 times more volatile than Superior Plus Corp. It trades about -0.01 of its potential returns per unit of risk. Superior Plus Corp is currently generating about -0.06 per unit of risk. If you would invest 726.00 in ENN Energy Holdings on September 5, 2024 and sell it today you would lose (76.00) from holding ENN Energy Holdings or give up 10.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
ENN Energy Holdings vs. Superior Plus Corp
Performance |
| Timeline |
| ENN Energy Holdings |
| Superior Plus Corp |
ENN Energy and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENN Energy and Superior Plus
The main advantage of trading using opposite ENN Energy and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENN Energy position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| ENN Energy vs. Superior Plus Corp | ENN Energy vs. NMI Holdings | ENN Energy vs. Origin Agritech | ENN Energy vs. SIVERS SEMICONDUCTORS AB |
| Superior Plus vs. Mobilezone Holding AG | Superior Plus vs. Citic Telecom International | Superior Plus vs. Tower One Wireless | Superior Plus vs. Ribbon Communications |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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