Correlation Between Robot SA and Enags SA

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

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

Diversification Opportunities for Robot SA and Enags SA

0.42

Correlation Coefficient

Robot SA  Enags SA

Very weak diversification

The 3 months correlation between Robot and Enags is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Robot SA and Enags SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enags SA and Robot SA 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 Robot SA are associated (or correlated) with Enags SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enags SA has no effect on the direction of Robot SA i.e., Robot SA and Enags SA go up and down completely randomly.

Pair Corralation between Robot SA and Enags SA

Assuming the 90 days trading horizon Robot SA is expected to generate 3.73 times more return on investment than Enags SA. However, Robot SA is 3.73 times more volatile than Enags SA. It trades about 0.14 of its potential returns per unit of risk. Enags SA is currently generating about 0.07 per unit of risk. If you would invest  195.00  in Robot SA on April 24, 2025 and sell it today you would earn a total of  59.00  from holding Robot SA or generate 30.26% return on investment over 90 days.

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

Robot SA  vs.  Enags SA

Robot SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Robot SA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Robot SA exhibited solid returns over the last few months and may actually be approaching a breakup point.

Enags SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Enags SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Enags SA is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Robot SA and Enags SA

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

The idea behind Robot SA and Enags SA 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.