Correlation Between Enersys and Powell Industries
Can any of the company-specific risk be diversified away by investing in both Enersys and Powell Industries 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 Enersys and Powell Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enersys and Powell Industries, you can compare the effects of market volatilities on Enersys and Powell Industries 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 Enersys with a short position of Powell Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enersys and Powell Industries.
Diversification Opportunities for Enersys and Powell Industries
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enersys and Powell is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Enersys and Powell Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powell Industries and Enersys 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 Enersys are associated (or correlated) with Powell Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powell Industries has no effect on the direction of Enersys i.e., Enersys and Powell Industries go up and down completely randomly.
Pair Corralation between Enersys and Powell Industries
Considering the 90-day investment horizon Enersys is expected to generate 0.49 times more return on investment than Powell Industries. However, Enersys is 2.03 times less risky than Powell Industries. It trades about 0.29 of its potential returns per unit of risk. Powell Industries is currently generating about 0.06 per unit of risk. If you would invest 10,210 in Enersys on August 27, 2025 and sell it today you would earn a total of 3,845 from holding Enersys or generate 37.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enersys vs. Powell Industries
Performance |
| Timeline |
| Enersys |
| Powell Industries |
Enersys and Powell Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enersys and Powell Industries
The main advantage of trading using opposite Enersys and Powell Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enersys position performs unexpectedly, Powell Industries 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 Powell Industries will offset losses from the drop in Powell Industries' long position.| Enersys vs. Videolocity International | Enersys vs. Tencent Music Entertainment | Enersys vs. Guidewire Software | Enersys vs. FalconStor Software |
| Powell Industries vs. Plaza Retail REIT | Powell Industries vs. Salesforce | Powell Industries vs. H2O Retailing | Powell Industries vs. Foreign Trade Bank |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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