Correlation Between Enova International and Porch

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

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

Diversification Opportunities for Enova International and Porch

0.84

Correlation Coefficient

Enova International  Porch

Very poor diversification

The 3 months correlation between Enova and Porch is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Enova International and Porch Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porch Group and Enova International 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 Enova International are associated (or correlated) with Porch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porch Group has no effect on the direction of Enova International i.e., Enova International and Porch go up and down completely randomly.

Pair Corralation between Enova International and Porch

Given the investment horizon of 90 days Enova International is expected to generate 1.95 times less return on investment than Porch. But when comparing it to its historical volatility, Enova International is 2.07 times less risky than Porch. It trades about 0.1 of its potential returns per unit of risk. Porch Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,065  in Porch Group on May 7, 2025 and sell it today you would earn a total of  221.00  from holding Porch Group or generate 20.75% return on investment over 90 days.

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

Enova International  vs.  Porch Group

Enova International

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Enova International are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Enova International may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Porch Group

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Porch Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent fundamental indicators, Porch demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Enova International and Porch

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

The idea behind Enova International and Porch 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.