Correlation Between CSWI Old and Enerpac Tool

Can any of the company-specific risk be diversified away by investing in both CSWI Old and Enerpac Tool 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 CSWI Old and Enerpac Tool into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CSWI Old and Enerpac Tool Group, you can compare the effects of market volatilities on CSWI Old and Enerpac Tool 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 CSWI Old with a short position of Enerpac Tool. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSWI Old and Enerpac Tool.

Diversification Opportunities for CSWI Old and Enerpac Tool

0.01

Correlation Coefficient

CSWI Old  Enerpac Tool

Significant diversification

The 3 months correlation between CSWI and Enerpac is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding CSWI Old and Enerpac Tool Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerpac Tool Group and CSWI Old 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 CSWI Old are associated (or correlated) with Enerpac Tool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enerpac Tool Group has no effect on the direction of CSWI Old i.e., CSWI Old and Enerpac Tool go up and down completely randomly.

Pair Corralation between CSWI Old and Enerpac Tool

Given the investment horizon of 90 days CSWI Old is expected to under-perform the Enerpac Tool. But the stock apears to be less risky and, when comparing its historical volatility, CSWI Old is 1.56 times less risky than Enerpac Tool. The stock trades about -0.23 of its potential returns per unit of risk. The Enerpac Tool Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  4,377  in Enerpac Tool Group on May 26, 2025 and sell it today you would lose (6.00) from holding Enerpac Tool Group or give up 0.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	15.87%
Values	Daily Returns

CSWI Old  vs.  Enerpac Tool Group

CSWI Old

Risk-Adjusted Performance

Weakest

Over the last 90 days CSWI Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Enerpac Tool Group

Risk-Adjusted Performance

Weakest

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 rather sound basic indicators, Enerpac Tool is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with CSWI Old and Enerpac Tool

The main advantage of trading using opposite CSWI Old and Enerpac Tool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSWI Old position performs unexpectedly, Enerpac Tool 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 Enerpac Tool will offset losses from the drop in Enerpac Tool's long position.

The idea behind CSWI Old and Enerpac Tool Group 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.