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
Modest diversification
The 3 months correlation between Enerflex and Bristow is 0.21. 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 1.06 times less return on investment than Bristow. In addition to that, Enerflex is 1.39 times more volatile than Bristow Group. It trades about 0.27 of its total potential returns per unit of risk. Bristow Group is currently generating about 0.4 per unit of volatility. If you would invest 3,266 in Bristow Group on October 20, 2024 and sell it today you would earn a total of 386.00 from holding Bristow Group or generate 11.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| 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. Forum Energy Technologies |
| Bristow vs. Oil States International | Bristow vs. Geospace Technologies | Bristow vs. Weatherford International PLC | Bristow vs. Enerflex |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |