Correlation Between E2open Parent and Enfusion

Can any of the company-specific risk be diversified away by investing in both E2open Parent and Enfusion 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 E2open Parent and Enfusion into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between E2open Parent Holdings and Enfusion, you can compare the effects of market volatilities on E2open Parent and Enfusion 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 E2open Parent with a short position of Enfusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of E2open Parent and Enfusion.

Diversification Opportunities for E2open Parent and Enfusion

0.05

Correlation Coefficient

E2open Parent  Enfusion

Significant diversification

The 3 months correlation between E2open and Enfusion is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding E2open Parent Holdings and Enfusion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enfusion and E2open Parent 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 E2open Parent Holdings are associated (or correlated) with Enfusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enfusion has no effect on the direction of E2open Parent i.e., E2open Parent and Enfusion go up and down completely randomly.

Pair Corralation between E2open Parent and Enfusion

If you would invest  226.00  in E2open Parent Holdings on May 4, 2025 and sell it today you would earn a total of  104.00  from holding E2open Parent Holdings or generate 46.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

E2open Parent Holdings  vs.  Enfusion

E2open Parent Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in E2open Parent Holdings are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, E2open Parent displayed solid returns over the last few months and may actually be approaching a breakup point.

Enfusion

Risk-Adjusted Performance

Very Weak

Over the last 90 days Enfusion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Enfusion is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with E2open Parent and Enfusion

The main advantage of trading using opposite E2open Parent and Enfusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E2open Parent position performs unexpectedly, Enfusion 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 Enfusion will offset losses from the drop in Enfusion's long position.

The idea behind E2open Parent Holdings and Enfusion 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.