Correlation Between Enter Air and Trimble

Can any of the company-specific risk be diversified away by investing in both Enter Air and Trimble 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 Enter Air and Trimble into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Enter Air SA and Trimble, you can compare the effects of market volatilities on Enter Air and Trimble 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 Enter Air with a short position of Trimble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enter Air and Trimble.

Diversification Opportunities for Enter Air and Trimble

-0.12

Correlation Coefficient

Enter Air  Trimble

Good diversification

The 3 months correlation between Enter and Trimble is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Enter Air SA and Trimble in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trimble and Enter Air 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 Enter Air SA are associated (or correlated) with Trimble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trimble has no effect on the direction of Enter Air i.e., Enter Air and Trimble go up and down completely randomly.

Pair Corralation between Enter Air and Trimble

Assuming the 90 days trading horizon Enter Air is expected to generate 17.9 times less return on investment than Trimble. In addition to that, Enter Air is 1.05 times more volatile than Trimble. It trades about 0.01 of its total potential returns per unit of risk. Trimble is currently generating about 0.27 per unit of volatility. If you would invest  5,392  in Trimble on April 24, 2025 and sell it today you would earn a total of  1,536  from holding Trimble or generate 28.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Enter Air SA  vs.  Trimble

Enter Air SA

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Enter Air SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Enter Air is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Trimble

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Trimble are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Trimble reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Enter Air and Trimble

The main advantage of trading using opposite Enter Air and Trimble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enter Air position performs unexpectedly, Trimble 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 Trimble will offset losses from the drop in Trimble's long position.

The idea behind Enter Air SA and Trimble pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..