Correlation Between MACOM Technology and ENVVENO MEDICAL

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

By analyzing existing cross correlation between MACOM Technology Solutions and ENVVENO MEDICAL DL 00001, you can compare the effects of market volatilities on MACOM Technology and ENVVENO MEDICAL 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 MACOM Technology with a short position of ENVVENO MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MACOM Technology and ENVVENO MEDICAL.

Diversification Opportunities for MACOM Technology and ENVVENO MEDICAL

0.89

Correlation Coefficient

MACOM Technology  ENVVENO MEDICAL

Very poor diversification

The 3 months correlation between MACOM and ENVVENO is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding MACOM Technology Solutions and ENVVENO MEDICAL DL 00001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENVVENO MEDICAL DL and MACOM Technology 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 MACOM Technology Solutions are associated (or correlated) with ENVVENO MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENVVENO MEDICAL DL has no effect on the direction of MACOM Technology i.e., MACOM Technology and ENVVENO MEDICAL go up and down completely randomly.

Pair Corralation between MACOM Technology and ENVVENO MEDICAL

Assuming the 90 days horizon MACOM Technology is expected to generate 2.28 times less return on investment than ENVVENO MEDICAL. But when comparing it to its historical volatility, MACOM Technology Solutions is 2.63 times less risky than ENVVENO MEDICAL. It trades about 0.25 of its potential returns per unit of risk. ENVVENO MEDICAL DL 00001 is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  232.00  in ENVVENO MEDICAL DL 00001 on April 23, 2025 and sell it today you would earn a total of  216.00  from holding ENVVENO MEDICAL DL 00001 or generate 93.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

MACOM Technology Solutions  vs.  ENVVENO MEDICAL DL 00001

MACOM Technology Sol

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MACOM Technology Solutions are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, MACOM Technology reported solid returns over the last few months and may actually be approaching a breakup point.

ENVVENO MEDICAL DL

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ENVVENO MEDICAL DL 00001 are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ENVVENO MEDICAL reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MACOM Technology and ENVVENO MEDICAL

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

The idea behind MACOM Technology Solutions and ENVVENO MEDICAL DL 00001 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.