Correlation Between ENN Energy and Gateway Real
Can any of the company-specific risk be diversified away by investing in both ENN Energy and Gateway Real 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 Gateway Real 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 Gateway Real Estate, you can compare the effects of market volatilities on ENN Energy and Gateway Real 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 Gateway Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENN Energy and Gateway Real.
Diversification Opportunities for ENN Energy and Gateway Real
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ENN and Gateway is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding ENN Energy Holdings and Gateway Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gateway Real Estate 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 Gateway Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gateway Real Estate has no effect on the direction of ENN Energy i.e., ENN Energy and Gateway Real go up and down completely randomly.
Pair Corralation between ENN Energy and Gateway Real
Assuming the 90 days trading horizon ENN Energy is expected to generate 535.06 times less return on investment than Gateway Real. But when comparing it to its historical volatility, ENN Energy Holdings is 26.15 times less risky than Gateway Real. It trades about 0.01 of its potential returns per unit of risk. Gateway Real Estate is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 62.00 in Gateway Real Estate on October 17, 2024 and sell it today you would earn a total of 21.00 from holding Gateway Real Estate or generate 33.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ENN Energy Holdings vs. Gateway Real Estate
Performance |
| Timeline |
| ENN Energy Holdings |
| Gateway Real Estate |
ENN Energy and Gateway Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENN Energy and Gateway Real
The main advantage of trading using opposite ENN Energy and Gateway Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENN Energy position performs unexpectedly, Gateway Real 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 Gateway Real will offset losses from the drop in Gateway Real's long position.| ENN Energy vs. Bio Techne Corp | ENN Energy vs. Minerals Technologies | ENN Energy vs. Easy Software AG | ENN Energy vs. ARROW ELECTRONICS |
| Gateway Real vs. Forsys Metals Corp | Gateway Real vs. ANTA SPORTS PRODUCT | Gateway Real vs. WIZZ AIR HLDGUNSPADR4 | Gateway Real vs. Air Transport Services |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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