Correlation Between EnWave and PyroGenesis Canada

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

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

Diversification Opportunities for EnWave and PyroGenesis Canada

0.29

Correlation Coefficient

EnWave  PyroGenesis Canada

Modest diversification

The 3 months correlation between EnWave and PyroGenesis is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding EnWave and PyroGenesis Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PyroGenesis Canada and EnWave 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 EnWave are associated (or correlated) with PyroGenesis Canada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PyroGenesis Canada has no effect on the direction of EnWave i.e., EnWave and PyroGenesis Canada go up and down completely randomly.

Pair Corralation between EnWave and PyroGenesis Canada

Assuming the 90 days horizon EnWave is expected to generate 1.27 times more return on investment than PyroGenesis Canada. However, EnWave is 1.27 times more volatile than PyroGenesis Canada. It trades about 0.04 of its potential returns per unit of risk. PyroGenesis Canada is currently generating about -0.02 per unit of risk. If you would invest  22.00  in EnWave on August 17, 2025 and sell it today you would earn a total of  6.00  from holding EnWave or generate 27.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

EnWave  vs.  PyroGenesis Canada

EnWave

Risk-Adjusted Performance

Weakest

Over the last 90 days EnWave has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, EnWave is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

PyroGenesis Canada

Risk-Adjusted Performance

Weakest

Over the last 90 days PyroGenesis Canada has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with EnWave and PyroGenesis Canada

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

The idea behind EnWave and PyroGenesis Canada 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.