Correlation Between Eni SPA and Addentax Group
Can any of the company-specific risk be diversified away by investing in both Eni SPA and Addentax Group 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 Eni SPA and Addentax Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eni SpA ADR and Addentax Group Corp, you can compare the effects of market volatilities on Eni SPA and Addentax Group 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 Eni SPA with a short position of Addentax Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eni SPA and Addentax Group.
Diversification Opportunities for Eni SPA and Addentax Group
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eni and Addentax is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Eni SpA ADR and Addentax Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addentax Group Corp and Eni SPA 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 Eni SpA ADR are associated (or correlated) with Addentax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addentax Group Corp has no effect on the direction of Eni SPA i.e., Eni SPA and Addentax Group go up and down completely randomly.
Pair Corralation between Eni SPA and Addentax Group
Taking into account the 90-day investment horizon Eni SpA ADR is expected to generate 0.14 times more return on investment than Addentax Group. However, Eni SpA ADR is 7.05 times less risky than Addentax Group. It trades about 0.1 of its potential returns per unit of risk. Addentax Group Corp is currently generating about 0.0 per unit of risk. If you would invest 3,476 in Eni SpA ADR on August 29, 2025 and sell it today you would earn a total of 235.00 from holding Eni SpA ADR or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eni SpA ADR vs. Addentax Group Corp
Performance |
| Timeline |
| Eni SpA ADR |
| Addentax Group Corp |
Eni SPA and Addentax Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eni SPA and Addentax Group
The main advantage of trading using opposite Eni SPA and Addentax Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eni SPA position performs unexpectedly, Addentax Group 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 Addentax Group will offset losses from the drop in Addentax Group's long position.| Eni SPA vs. GMO Internet | Eni SPA vs. Xtera Communications | Eni SPA vs. Mount Gibson Iron | Eni SPA vs. Renovare Environmental |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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