Correlation Between CGG SA and Enerflex
Can any of the company-specific risk be diversified away by investing in both CGG SA and Enerflex 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 CGG SA and Enerflex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CGG SA ADR and Enerflex, you can compare the effects of market volatilities on CGG SA and Enerflex 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 CGG SA with a short position of Enerflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of CGG SA and Enerflex.
Diversification Opportunities for CGG SA and Enerflex
Modest diversification
The 3 months correlation between CGG and Enerflex is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding CGG SA ADR and Enerflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerflex and CGG SA 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 CGG SA ADR are associated (or correlated) with Enerflex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enerflex has no effect on the direction of CGG SA i.e., CGG SA and Enerflex go up and down completely randomly.
Pair Corralation between CGG SA and Enerflex
If you would invest 644.00 in Enerflex on August 31, 2024 and sell it today you would earn a total of 281.00 from holding Enerflex or generate 43.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
CGG SA ADR vs. Enerflex
Performance |
| Timeline |
| CGG SA ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Enerflex |
CGG SA and Enerflex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CGG SA and Enerflex
The main advantage of trading using opposite CGG SA and Enerflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGG SA position performs unexpectedly, Enerflex 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 Enerflex will offset losses from the drop in Enerflex's long position.| CGG SA vs. Akastor ASA | CGG SA vs. Greenway Technologies | CGG SA vs. Trican Well Service | CGG SA vs. NCS Multistage Holdings |
| Enerflex vs. Now Inc | Enerflex vs. Bristow Group | Enerflex vs. Helix Energy Solutions | Enerflex vs. Oceaneering International |
Check out your portfolio center.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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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