Correlation Between EnGene Holdings and Bright Minds
Can any of the company-specific risk be diversified away by investing in both EnGene Holdings and Bright Minds 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 EnGene Holdings and Bright Minds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between enGene Holdings Common and Bright Minds Biosciences, you can compare the effects of market volatilities on EnGene Holdings and Bright Minds 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 EnGene Holdings with a short position of Bright Minds. Check out your portfolio center. Please also check ongoing floating volatility patterns of EnGene Holdings and Bright Minds.
Diversification Opportunities for EnGene Holdings and Bright Minds
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between EnGene and Bright is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding enGene Holdings Common and Bright Minds Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bright Minds Biosciences and EnGene Holdings 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 enGene Holdings Common are associated (or correlated) with Bright Minds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bright Minds Biosciences has no effect on the direction of EnGene Holdings i.e., EnGene Holdings and Bright Minds go up and down completely randomly.
Pair Corralation between EnGene Holdings and Bright Minds
Given the investment horizon of 90 days enGene Holdings Common is expected to generate 2.2 times more return on investment than Bright Minds. However, EnGene Holdings is 2.2 times more volatile than Bright Minds Biosciences. It trades about 0.13 of its potential returns per unit of risk. Bright Minds Biosciences is currently generating about 0.19 per unit of risk. If you would invest 464.00 in enGene Holdings Common on August 29, 2025 and sell it today you would earn a total of 361.00 from holding enGene Holdings Common or generate 77.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
enGene Holdings Common vs. Bright Minds Biosciences
Performance |
| Timeline |
| enGene Holdings Common |
| Bright Minds Biosciences |
EnGene Holdings and Bright Minds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EnGene Holdings and Bright Minds
The main advantage of trading using opposite EnGene Holdings and Bright Minds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EnGene Holdings position performs unexpectedly, Bright Minds 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 Bright Minds will offset losses from the drop in Bright Minds' long position.| EnGene Holdings vs. GRI Bio | EnGene Holdings vs. Prime Medicine, Common | EnGene Holdings vs. Zenas BioPharma, Common | EnGene Holdings vs. FT Vest Equity |
| Bright Minds vs. Universal Insurance Holdings | Bright Minds vs. National Retail Properties | Bright Minds vs. Life Insurance | Bright Minds vs. BJs Wholesale Club |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |