Correlation Between ASSGENERALI ADR and ENSTAR GROUP
Can any of the company-specific risk be diversified away by investing in both ASSGENERALI ADR and ENSTAR GROUP 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 ASSGENERALI ADR and ENSTAR GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASSGENERALI ADR 12EO and ENSTAR GROUP LTD, you can compare the effects of market volatilities on ASSGENERALI ADR and ENSTAR GROUP 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 ASSGENERALI ADR with a short position of ENSTAR GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASSGENERALI ADR and ENSTAR GROUP.
Diversification Opportunities for ASSGENERALI ADR and ENSTAR GROUP
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASSGENERALI and ENSTAR is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding ASSGENERALI ADR 12EO and ENSTAR GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENSTAR GROUP LTD and ASSGENERALI ADR 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 ASSGENERALI ADR 12EO are associated (or correlated) with ENSTAR GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENSTAR GROUP LTD has no effect on the direction of ASSGENERALI ADR i.e., ASSGENERALI ADR and ENSTAR GROUP go up and down completely randomly.
Pair Corralation between ASSGENERALI ADR and ENSTAR GROUP
Assuming the 90 days trading horizon ASSGENERALI ADR 12EO is expected to generate 2.7 times more return on investment than ENSTAR GROUP. However, ASSGENERALI ADR is 2.7 times more volatile than ENSTAR GROUP LTD. It trades about 0.07 of its potential returns per unit of risk. ENSTAR GROUP LTD is currently generating about -0.11 per unit of risk. If you would invest 1,464 in ASSGENERALI ADR 12EO on April 24, 2025 and sell it today you would earn a total of 96.00 from holding ASSGENERALI ADR 12EO or generate 6.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 79.37% |
Values | Daily Returns |
ASSGENERALI ADR 12EO vs. ENSTAR GROUP LTD
Performance |
Timeline |
ASSGENERALI ADR 12EO |
ENSTAR GROUP LTD |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ASSGENERALI ADR and ENSTAR GROUP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ASSGENERALI ADR and ENSTAR GROUP
The main advantage of trading using opposite ASSGENERALI ADR and ENSTAR GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASSGENERALI ADR position performs unexpectedly, ENSTAR GROUP 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 ENSTAR GROUP will offset losses from the drop in ENSTAR GROUP's long position.ASSGENERALI ADR vs. Meli Hotels International | ASSGENERALI ADR vs. bet at home AG | ASSGENERALI ADR vs. HYATT HOTELS A | ASSGENERALI ADR vs. Beazer Homes USA |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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