Correlation Between Levinstein Eng and Enlight Renewable

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

Diversification Opportunities for Levinstein Eng and Enlight Renewable

0.86
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Levinstein and Enlight is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Levinstein Eng and Enlight Renewable Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enlight Renewable Energy and Levinstein Eng 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 Levinstein Eng are associated (or correlated) with Enlight Renewable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enlight Renewable Energy has no effect on the direction of Levinstein Eng i.e., Levinstein Eng and Enlight Renewable go up and down completely randomly.

Pair Corralation between Levinstein Eng and Enlight Renewable

Assuming the 90 days trading horizon Levinstein Eng is expected to generate 1.43 times less return on investment than Enlight Renewable. In addition to that, Levinstein Eng is 1.14 times more volatile than Enlight Renewable Energy. It trades about 0.21 of its total potential returns per unit of risk. Enlight Renewable Energy is currently generating about 0.35 per unit of volatility. If you would invest  580,200  in Enlight Renewable Energy on April 24, 2025 and sell it today you would earn a total of  286,800  from holding Enlight Renewable Energy or generate 49.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Levinstein Eng  vs.  Enlight Renewable Energy

 Performance 
       Timeline  
Levinstein Eng 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Levinstein Eng are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Levinstein Eng sustained solid returns over the last few months and may actually be approaching a breakup point.
Enlight Renewable Energy 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Enlight Renewable Energy are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Enlight Renewable sustained solid returns over the last few months and may actually be approaching a breakup point.

Levinstein Eng and Enlight Renewable Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Levinstein Eng and Enlight Renewable

The main advantage of trading using opposite Levinstein Eng and Enlight Renewable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Levinstein Eng position performs unexpectedly, Enlight Renewable 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 Enlight Renewable will offset losses from the drop in Enlight Renewable's long position.
The idea behind Levinstein Eng and Enlight Renewable Energy 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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