Correlation Between Smart Eye and Enersize

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

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

Diversification Opportunities for Smart Eye and Enersize

-0.31

Correlation Coefficient

Smart Eye  Enersize

Very good diversification

The 3 months correlation between Smart and Enersize is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Smart Eye AB and Enersize Oy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enersize Oy and Smart Eye 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 Smart Eye AB are associated (or correlated) with Enersize. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enersize Oy has no effect on the direction of Smart Eye i.e., Smart Eye and Enersize go up and down completely randomly.

Pair Corralation between Smart Eye and Enersize

Assuming the 90 days trading horizon Smart Eye AB is expected to generate 0.25 times more return on investment than Enersize. However, Smart Eye AB is 4.03 times less risky than Enersize. It trades about 0.08 of its potential returns per unit of risk. Enersize Oy is currently generating about 0.01 per unit of risk. If you would invest  5,700  in Smart Eye AB on April 24, 2025 and sell it today you would earn a total of  760.00  from holding Smart Eye AB or generate 13.33% return on investment over 90 days.

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

Smart Eye AB  vs.  Enersize Oy

Smart Eye AB

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Smart Eye AB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Smart Eye unveiled solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Smart Eye and Enersize

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

The idea behind Smart Eye AB and Enersize Oy 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.