Correlation Between Enservco and Enerflex
Can any of the company-specific risk be diversified away by investing in both Enservco and Enerflex 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 Enservco and Enerflex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enservco Co and Enerflex, you can compare the effects of market volatilities on Enservco and Enerflex 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 Enservco with a short position of Enerflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enservco and Enerflex.
Diversification Opportunities for Enservco and Enerflex
Very good diversification
The 3 months correlation between Enservco and Enerflex is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Enservco Co and Enerflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerflex and Enservco 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 Enservco Co are associated (or correlated) with Enerflex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enerflex has no effect on the direction of Enservco i.e., Enservco and Enerflex go up and down completely randomly.
Pair Corralation between Enservco and Enerflex
Given the investment horizon of 90 days Enservco Co is expected to under-perform the Enerflex. In addition to that, Enservco is 2.29 times more volatile than Enerflex. It trades about -0.07 of its total potential returns per unit of risk. Enerflex is currently generating about 0.04 per unit of volatility. If you would invest 611.00 in Enerflex on August 24, 2024 and sell it today you would earn a total of 329.00 from holding Enerflex or generate 53.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.78% |
| Values | Daily Returns |
Enservco Co vs. Enerflex
Performance |
| Timeline |
| Enservco |
| Enerflex |
Enservco and Enerflex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enservco and Enerflex
The main advantage of trading using opposite Enservco and Enerflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enservco position performs unexpectedly, Enerflex 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 Enerflex will offset losses from the drop in Enerflex's long position.| Enservco vs. Houston American Energy | Enservco vs. Indonesia Energy | Enservco vs. Imperial Petroleum | Enservco vs. Nine Energy Service |
| Enerflex vs. Natural Gas Services | Enerflex vs. Archrock | Enerflex vs. Geospace Technologies | Enerflex vs. Newpark Resources |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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