Correlation Between Enerflex and Bristow
Can any of the company-specific risk be diversified away by investing in both Enerflex and Bristow 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 Bristow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enerflex and Bristow Group, you can compare the effects of market volatilities on Enerflex and Bristow 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 Bristow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enerflex and Bristow.
Diversification Opportunities for Enerflex and Bristow
Average diversification
The 3 months correlation between Enerflex and Bristow is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Enerflex and Bristow Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bristow Group 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 Bristow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bristow Group has no effect on the direction of Enerflex i.e., Enerflex and Bristow go up and down completely randomly.
Pair Corralation between Enerflex and Bristow
Given the investment horizon of 90 days Enerflex is expected to generate 1.26 times more return on investment than Bristow. However, Enerflex is 1.26 times more volatile than Bristow Group. It trades about 0.04 of its potential returns per unit of risk. Bristow Group is currently generating about 0.04 per unit of risk. If you would invest 645.00 in Enerflex on August 23, 2024 and sell it today you would earn a total of 279.00 from holding Enerflex or generate 43.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enerflex vs. Bristow Group
Performance |
| Timeline |
| Enerflex |
| Bristow Group |
Enerflex and Bristow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enerflex and Bristow
The main advantage of trading using opposite Enerflex and Bristow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enerflex position performs unexpectedly, Bristow 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 Bristow will offset losses from the drop in Bristow's long position.| Enerflex vs. Natural Gas Services | Enerflex vs. Archrock | Enerflex vs. Geospace Technologies | Enerflex vs. Newpark Resources |
| Bristow vs. Weatherford International PLC | Bristow vs. NOV Inc | Bristow vs. Liberty Oilfield Services | Bristow vs. TechnipFMC PLC |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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