Correlation Between Enerflex and Pulse Seismic
Can any of the company-specific risk be diversified away by investing in both Enerflex and Pulse Seismic 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 Pulse Seismic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enerflex and Pulse Seismic, you can compare the effects of market volatilities on Enerflex and Pulse Seismic 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 Pulse Seismic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enerflex and Pulse Seismic.
Diversification Opportunities for Enerflex and Pulse Seismic
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enerflex and Pulse is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Enerflex and Pulse Seismic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pulse Seismic 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 Pulse Seismic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pulse Seismic has no effect on the direction of Enerflex i.e., Enerflex and Pulse Seismic go up and down completely randomly.
Pair Corralation between Enerflex and Pulse Seismic
Given the investment horizon of 90 days Enerflex is expected to under-perform the Pulse Seismic. In addition to that, Enerflex is 1.06 times more volatile than Pulse Seismic. It trades about -0.12 of its total potential returns per unit of risk. Pulse Seismic is currently generating about 0.07 per unit of volatility. If you would invest 163.00 in Pulse Seismic on November 3, 2024 and sell it today you would earn a total of 5.00 from holding Pulse Seismic or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enerflex vs. Pulse Seismic
Performance |
| Timeline |
| Enerflex |
| Pulse Seismic |
Enerflex and Pulse Seismic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enerflex and Pulse Seismic
The main advantage of trading using opposite Enerflex and Pulse Seismic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enerflex position performs unexpectedly, Pulse Seismic 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 Pulse Seismic will offset losses from the drop in Pulse Seismic's long position.| Enerflex vs. Natural Gas Services | Enerflex vs. Archrock | Enerflex vs. Geospace Technologies | Enerflex vs. Forum Energy Technologies |
| Pulse Seismic vs. Now Inc | Pulse Seismic vs. Enerflex | Pulse Seismic vs. Bristow Group | Pulse Seismic vs. Forum Energy Technologies |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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