Correlation Between Enad Global and Adventure Box

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Can any of the company-specific risk be diversified away by investing in both Enad Global and Adventure Box 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 Enad Global and Adventure Box into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enad Global 7 and Adventure Box Technology, you can compare the effects of market volatilities on Enad Global and Adventure Box 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 Enad Global with a short position of Adventure Box. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enad Global and Adventure Box.

Diversification Opportunities for Enad Global and Adventure Box

-0.56
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Enad and Adventure is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Enad Global 7 and Adventure Box Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adventure Box Technology and Enad Global 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 Enad Global 7 are associated (or correlated) with Adventure Box. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adventure Box Technology has no effect on the direction of Enad Global i.e., Enad Global and Adventure Box go up and down completely randomly.

Pair Corralation between Enad Global and Adventure Box

Assuming the 90 days trading horizon Enad Global 7 is expected to generate 0.16 times more return on investment than Adventure Box. However, Enad Global 7 is 6.35 times less risky than Adventure Box. It trades about 0.06 of its potential returns per unit of risk. Adventure Box Technology is currently generating about 0.0 per unit of risk. If you would invest  1,208  in Enad Global 7 on April 24, 2025 and sell it today you would earn a total of  114.00  from holding Enad Global 7 or generate 9.44% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy98.36%
ValuesDaily Returns

Enad Global 7  vs.  Adventure Box Technology

 Performance 
       Timeline  
Enad Global 7 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Enad Global 7 are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Enad Global may actually be approaching a critical reversion point that can send shares even higher in August 2025.
Adventure Box Technology 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Adventure Box Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Adventure Box is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Enad Global and Adventure Box Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Enad Global and Adventure Box

The main advantage of trading using opposite Enad Global and Adventure Box positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enad Global position performs unexpectedly, Adventure Box 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 Adventure Box will offset losses from the drop in Adventure Box's long position.
The idea behind Enad Global 7 and Adventure Box Technology 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.
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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