Correlation Between Enzymatica Publ and Magle Chemoswed

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

Diversification Opportunities for Enzymatica Publ and Magle Chemoswed

0.52
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Enzymatica and Magle is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Enzymatica publ AB and Magle Chemoswed Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magle Chemoswed Holding and Enzymatica Publ 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 Enzymatica publ AB are associated (or correlated) with Magle Chemoswed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magle Chemoswed Holding has no effect on the direction of Enzymatica Publ i.e., Enzymatica Publ and Magle Chemoswed go up and down completely randomly.

Pair Corralation between Enzymatica Publ and Magle Chemoswed

Assuming the 90 days trading horizon Enzymatica publ AB is expected to under-perform the Magle Chemoswed. But the stock apears to be less risky and, when comparing its historical volatility, Enzymatica publ AB is 1.09 times less risky than Magle Chemoswed. The stock trades about -0.09 of its potential returns per unit of risk. The Magle Chemoswed Holding is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  2,180  in Magle Chemoswed Holding on August 20, 2025 and sell it today you would lose (270.00) from holding Magle Chemoswed Holding or give up 12.39% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy98.46%
ValuesDaily Returns

Enzymatica publ AB  vs.  Magle Chemoswed Holding

 Performance 
       Timeline  
Enzymatica publ AB 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Enzymatica publ AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
Magle Chemoswed Holding 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Magle Chemoswed Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Enzymatica Publ and Magle Chemoswed Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Enzymatica Publ and Magle Chemoswed

The main advantage of trading using opposite Enzymatica Publ and Magle Chemoswed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enzymatica Publ position performs unexpectedly, Magle Chemoswed 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 Magle Chemoswed will offset losses from the drop in Magle Chemoswed's long position.
The idea behind Enzymatica publ AB and Magle Chemoswed Holding 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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