Correlation Between Reliance Industries and ENEOS Holdings

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

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

Diversification Opportunities for Reliance Industries and ENEOS Holdings

-0.24

Correlation Coefficient

Reliance Industries  ENEOS Holdings

Very good diversification

The 3 months correlation between Reliance and ENEOS is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Reliance Industries Limited and ENEOS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENEOS Holdings and Reliance Industries 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 Reliance Industries Limited are associated (or correlated) with ENEOS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENEOS Holdings has no effect on the direction of Reliance Industries i.e., Reliance Industries and ENEOS Holdings go up and down completely randomly.

Pair Corralation between Reliance Industries and ENEOS Holdings

Assuming the 90 days horizon Reliance Industries Limited is expected to generate 1.25 times more return on investment than ENEOS Holdings. However, Reliance Industries is 1.25 times more volatile than ENEOS Holdings. It trades about 0.06 of its potential returns per unit of risk. ENEOS Holdings is currently generating about 0.06 per unit of risk. If you would invest  5,280  in Reliance Industries Limited on April 25, 2025 and sell it today you would earn a total of  360.00  from holding Reliance Industries Limited or generate 6.82% return on investment over 90 days.

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

Reliance Industries Limited  vs.  ENEOS Holdings

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.

ENEOS Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ENEOS Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, ENEOS Holdings is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Reliance Industries and ENEOS Holdings

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

The idea behind Reliance Industries Limited and ENEOS Holdings 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.