Correlation Between Enerflex and RPC
Can any of the company-specific risk be diversified away by investing in both Enerflex and RPC 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 Enerflex and RPC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enerflex and RPC Inc, you can compare the effects of market volatilities on Enerflex and RPC 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 Enerflex with a short position of RPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enerflex and RPC.
Diversification Opportunities for Enerflex and RPC
Very poor diversification
The 3 months correlation between Enerflex and RPC is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Enerflex and RPC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RPC Inc and Enerflex 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 Enerflex are associated (or correlated) with RPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RPC Inc has no effect on the direction of Enerflex i.e., Enerflex and RPC go up and down completely randomly.
Pair Corralation between Enerflex and RPC
Assuming the 90 days trading horizon Enerflex is expected to generate 1.05 times more return on investment than RPC. However, Enerflex is 1.05 times more volatile than RPC Inc. It trades about 0.23 of its potential returns per unit of risk. RPC Inc is currently generating about 0.18 per unit of risk. If you would invest 1,821 in Enerflex on November 1, 2025 and sell it today you would earn a total of 678.00 from holding Enerflex or generate 37.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Enerflex vs. RPC Inc
Performance |
| Timeline |
| Enerflex |
| RPC Inc |
Enerflex and RPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enerflex and RPC
The main advantage of trading using opposite Enerflex and RPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enerflex position performs unexpectedly, RPC 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 RPC will offset losses from the drop in RPC's long position.| Enerflex vs. CES Energy Solutions | Enerflex vs. Freehold Royalties | Enerflex vs. Baytex Energy Corp | Enerflex vs. Tidewater Midstream and |
| RPC vs. National Energy Services | RPC vs. Bristow Group | RPC vs. NPK International | RPC vs. Helix Energy Solutions |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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