Correlation Between SinterCast and Enersize

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

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

Diversification Opportunities for SinterCast and Enersize

-0.45

Correlation Coefficient

SinterCast  Enersize

Very good diversification

The 3 months correlation between SinterCast and Enersize is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding SinterCast AB and Enersize Oy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enersize Oy and SinterCast 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 SinterCast 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 SinterCast i.e., SinterCast and Enersize go up and down completely randomly.

Pair Corralation between SinterCast and Enersize

Assuming the 90 days trading horizon SinterCast AB is expected to generate 0.11 times more return on investment than Enersize. However, SinterCast AB is 9.33 times less risky than Enersize. It trades about 0.19 of its potential returns per unit of risk. Enersize Oy is currently generating about 0.01 per unit of risk. If you would invest  10,076  in SinterCast AB on April 23, 2025 and sell it today you would earn a total of  1,724  from holding SinterCast AB or generate 17.11% return on investment over 90 days.

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

SinterCast AB  vs.  Enersize Oy

SinterCast AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SinterCast AB are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, SinterCast 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 SinterCast and Enersize

The main advantage of trading using opposite SinterCast and Enersize positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SinterCast 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 SinterCast 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.