Correlation Between ENEOS Holdings and Reliance Industries

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

By analyzing existing cross correlation between ENEOS Holdings and Reliance Industries Limited, you can compare the effects of market volatilities on ENEOS Holdings and Reliance Industries 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 ENEOS Holdings with a short position of Reliance Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENEOS Holdings and Reliance Industries.

Diversification Opportunities for ENEOS Holdings and Reliance Industries

0.0

Correlation Coefficient

ENEOS Holdings  Reliance Industries

Pay attention - limited upside

The 3 months correlation between ENEOS and Reliance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ENEOS Holdings and Reliance Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reliance Industries and ENEOS Holdings 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 ENEOS Holdings are associated (or correlated) with Reliance Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reliance Industries has no effect on the direction of ENEOS Holdings i.e., ENEOS Holdings and Reliance Industries go up and down completely randomly.

Pair Corralation between ENEOS Holdings and Reliance Industries

Assuming the 90 days horizon ENEOS Holdings is expected to generate 13.48 times less return on investment than Reliance Industries. But when comparing it to its historical volatility, ENEOS Holdings is 1.28 times less risky than Reliance Industries. It trades about 0.01 of its potential returns per unit of risk. Reliance Industries Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  5,300  in Reliance Industries Limited on April 23, 2025 and sell it today you would earn a total of  420.00  from holding Reliance Industries Limited or generate 7.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ENEOS Holdings  vs.  Reliance Industries Limited

ENEOS Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days ENEOS Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ENEOS Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Reliance Industries

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Reliance Industries Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Reliance Industries may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with ENEOS Holdings and Reliance Industries

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

The idea behind ENEOS Holdings and Reliance Industries Limited 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.