Correlation Between Enerflex and ChampionX
Can any of the company-specific risk be diversified away by investing in both Enerflex and ChampionX 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 ChampionX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enerflex and ChampionX, you can compare the effects of market volatilities on Enerflex and ChampionX 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 ChampionX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enerflex and ChampionX.
Diversification Opportunities for Enerflex and ChampionX
Very good diversification
The 3 months correlation between Enerflex and ChampionX is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Enerflex and ChampionX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChampionX 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 ChampionX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChampionX has no effect on the direction of Enerflex i.e., Enerflex and ChampionX go up and down completely randomly.
Pair Corralation between Enerflex and ChampionX
Given the investment horizon of 90 days Enerflex is expected to under-perform the ChampionX. In addition to that, Enerflex is 1.15 times more volatile than ChampionX. It trades about -0.28 of its total potential returns per unit of risk. ChampionX is currently generating about -0.14 per unit of volatility. If you would invest 3,121 in ChampionX on November 18, 2024 and sell it today you would lose (177.00) from holding ChampionX or give up 5.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enerflex vs. ChampionX
Performance |
| Timeline |
| Enerflex |
| ChampionX |
Enerflex and ChampionX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enerflex and ChampionX
The main advantage of trading using opposite Enerflex and ChampionX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enerflex position performs unexpectedly, ChampionX 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 ChampionX will offset losses from the drop in ChampionX's long position.| Enerflex vs. Natural Gas Services | Enerflex vs. Archrock | Enerflex vs. Geospace Technologies | Enerflex vs. Forum Energy Technologies |
| ChampionX vs. Expro Group Holdings | ChampionX vs. Ranger Energy Services | ChampionX vs. Cactus Inc | ChampionX vs. MRC Global |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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