Correlation Between PyroGenesis Canada and EnWave

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

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

Diversification Opportunities for PyroGenesis Canada and EnWave

0.45

Correlation Coefficient

PyroGenesis Canada  EnWave

Very weak diversification

The 3 months correlation between PyroGenesis and EnWave is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding PyroGenesis Canada and EnWave in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EnWave and PyroGenesis Canada 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 PyroGenesis Canada are associated (or correlated) with EnWave. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EnWave has no effect on the direction of PyroGenesis Canada i.e., PyroGenesis Canada and EnWave go up and down completely randomly.

Pair Corralation between PyroGenesis Canada and EnWave

Assuming the 90 days horizon PyroGenesis Canada is expected to under-perform the EnWave. In addition to that, PyroGenesis Canada is 1.31 times more volatile than EnWave. It trades about -0.15 of its total potential returns per unit of risk. EnWave is currently generating about 0.0 per unit of volatility. If you would invest  29.00  in EnWave on August 18, 2025 and sell it today you would lose (1.00) from holding EnWave or give up 3.45% of portfolio value over 90 days.

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

PyroGenesis Canada  vs.  EnWave

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.

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.

Pair Trading with PyroGenesis Canada and EnWave

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

The idea behind PyroGenesis Canada and EnWave 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.