Correlation Between Enerpac Tool and Take Two

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Enerpac Tool and Take Two 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 Enerpac Tool and Take Two into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enerpac Tool Group and Take Two Interactive Software, you can compare the effects of market volatilities on Enerpac Tool and Take Two 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 Enerpac Tool with a short position of Take Two. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enerpac Tool and Take Two.

Diversification Opportunities for Enerpac Tool and Take Two

0.5
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Enerpac and Take is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Enerpac Tool Group and Take Two Interactive Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Take Two Interactive and Enerpac Tool 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 Enerpac Tool Group are associated (or correlated) with Take Two. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Take Two Interactive has no effect on the direction of Enerpac Tool i.e., Enerpac Tool and Take Two go up and down completely randomly.

Pair Corralation between Enerpac Tool and Take Two

Given the investment horizon of 90 days Enerpac Tool Group is expected to under-perform the Take Two. But the stock apears to be less risky and, when comparing its historical volatility, Enerpac Tool Group is 1.06 times less risky than Take Two. The stock trades about -0.08 of its potential returns per unit of risk. The Take Two Interactive Software is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  24,626  in Take Two Interactive Software on September 12, 2025 and sell it today you would lose (24.00) from holding Take Two Interactive Software or give up 0.1% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Enerpac Tool Group  vs.  Take Two Interactive Software

 Performance 
       Timeline  
Enerpac Tool Group 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Enerpac Tool Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
Take Two Interactive 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Take Two Interactive Software has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Take Two is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Enerpac Tool and Take Two Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Enerpac Tool and Take Two

The main advantage of trading using opposite Enerpac Tool and Take Two positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enerpac Tool position performs unexpectedly, Take Two 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 Take Two will offset losses from the drop in Take Two's long position.
The idea behind Enerpac Tool Group and Take Two Interactive Software 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Other Complementary Tools

Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas