Correlation Between Enerflex and Ur Energy
Can any of the company-specific risk be diversified away by investing in both Enerflex and Ur Energy 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 Ur Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enerflex and Ur Energy, you can compare the effects of market volatilities on Enerflex and Ur Energy 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 Ur Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enerflex and Ur Energy.
Diversification Opportunities for Enerflex and Ur Energy
Poor diversification
The 3 months correlation between Enerflex and URG is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Enerflex and Ur Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ur Energy 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 Ur Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ur Energy has no effect on the direction of Enerflex i.e., Enerflex and Ur Energy go up and down completely randomly.
Pair Corralation between Enerflex and Ur Energy
Given the investment horizon of 90 days Enerflex is expected to generate 0.94 times more return on investment than Ur Energy. However, Enerflex is 1.07 times less risky than Ur Energy. It trades about 0.05 of its potential returns per unit of risk. Ur Energy is currently generating about 0.02 per unit of risk. If you would invest 594.00 in Enerflex on August 28, 2024 and sell it today you would earn a total of 344.00 from holding Enerflex or generate 57.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enerflex vs. Ur Energy
Performance |
| Timeline |
| Enerflex |
| Ur Energy |
Enerflex and Ur Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enerflex and Ur Energy
The main advantage of trading using opposite Enerflex and Ur Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enerflex position performs unexpectedly, Ur Energy 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 Ur Energy will offset losses from the drop in Ur Energy's long position.| Enerflex vs. Natural Gas Services | Enerflex vs. Archrock | Enerflex vs. Geospace Technologies | Enerflex vs. Newpark Resources |
| Ur Energy vs. Energy Fuels | Ur Energy vs. Uranium Energy Corp | Ur Energy vs. Denison Mines Corp | Ur Energy vs. NexGen Energy |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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