Correlation Between Crane NXT and Enovis Corp

Can any of the company-specific risk be diversified away by investing in both Crane NXT and Enovis Corp 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 Crane NXT and Enovis Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Crane NXT Co and Enovis Corp, you can compare the effects of market volatilities on Crane NXT and Enovis Corp 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 Crane NXT with a short position of Enovis Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crane NXT and Enovis Corp.

Diversification Opportunities for Crane NXT and Enovis Corp

-0.39

Correlation Coefficient

Crane NXT  Enovis Corp

Very good diversification

The 3 months correlation between Crane and Enovis is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Crane NXT Co and Enovis Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enovis Corp and Crane NXT 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 Crane NXT Co are associated (or correlated) with Enovis Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enovis Corp has no effect on the direction of Crane NXT i.e., Crane NXT and Enovis Corp go up and down completely randomly.

Pair Corralation between Crane NXT and Enovis Corp

Considering the 90-day investment horizon Crane NXT Co is expected to generate 0.56 times more return on investment than Enovis Corp. However, Crane NXT Co is 1.77 times less risky than Enovis Corp. It trades about 0.16 of its potential returns per unit of risk. Enovis Corp is currently generating about -0.09 per unit of risk. If you would invest  4,749  in Crane NXT Co on May 7, 2025 and sell it today you would earn a total of  983.00  from holding Crane NXT Co or generate 20.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Crane NXT Co  vs.  Enovis Corp

Crane NXT

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Crane NXT Co are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Crane NXT unveiled solid returns over the last few months and may actually be approaching a breakup point.

Enovis Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Enovis Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Crane NXT and Enovis Corp

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

The idea behind Crane NXT Co and Enovis Corp 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.