Correlation Between Enersize and CDON AB

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

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

Diversification Opportunities for Enersize and CDON AB

0.37

Correlation Coefficient

Enersize  CDON AB

Weak diversification

The 3 months correlation between Enersize and CDON is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Enersize Oy and CDON AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDON AB and Enersize 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 Enersize Oy are associated (or correlated) with CDON AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDON AB has no effect on the direction of Enersize i.e., Enersize and CDON AB go up and down completely randomly.

Pair Corralation between Enersize and CDON AB

Assuming the 90 days trading horizon Enersize is expected to generate 2.96 times less return on investment than CDON AB. In addition to that, Enersize is 2.14 times more volatile than CDON AB. It trades about 0.01 of its total potential returns per unit of risk. CDON AB is currently generating about 0.09 per unit of volatility. If you would invest  4,950  in CDON AB on April 24, 2025 and sell it today you would earn a total of  1,350  from holding CDON AB or generate 27.27% return on investment over 90 days.

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

Enersize Oy  vs.  CDON AB

Enersize Oy

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Enersize Oy are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Enersize may actually be approaching a critical reversion point that can send shares even higher in August 2025.

CDON AB

Risk-Adjusted Performance

Modest

Over the last 90 days CDON AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively weak basic indicators, CDON AB unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Enersize and CDON AB

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

The idea behind Enersize Oy and CDON AB 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.