Correlation Between Celestica and Enova Systems

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

Diversification Opportunities for Celestica and Enova Systems

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Celestica and Enova is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Celestica and Enova Systems OTC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enova Systems OTC and Celestica 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 Celestica are associated (or correlated) with Enova Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enova Systems OTC has no effect on the direction of Celestica i.e., Celestica and Enova Systems go up and down completely randomly.

Pair Corralation between Celestica and Enova Systems

If you would invest  4,176  in Celestica on December 29, 2023 and sell it today you would earn a total of  380.00  from holding Celestica or generate 9.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy4.55%
ValuesDaily Returns

Celestica  vs.  Enova Systems OTC

 Performance 
       Timeline  
Celestica 

Risk-Adjusted Performance

18 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Celestica are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady essential indicators, Celestica unveiled solid returns over the last few months and may actually be approaching a breakup point.
Enova Systems OTC 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Enova Systems OTC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Enova Systems is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Celestica and Enova Systems Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Celestica and Enova Systems

The main advantage of trading using opposite Celestica and Enova Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celestica position performs unexpectedly, Enova Systems 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 Enova Systems will offset losses from the drop in Enova Systems' long position.
The idea behind Celestica and Enova Systems OTC 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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