Correlation Between Ensign Energy and BSR Real
Can any of the company-specific risk be diversified away by investing in both Ensign Energy and BSR Real 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 Ensign Energy and BSR Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ensign Energy Services and BSR Real Estate, you can compare the effects of market volatilities on Ensign Energy and BSR Real 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 Ensign Energy with a short position of BSR Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ensign Energy and BSR Real.
Diversification Opportunities for Ensign Energy and BSR Real
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ensign and BSR is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ensign Energy Services and BSR Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BSR Real Estate and Ensign Energy 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 Ensign Energy Services are associated (or correlated) with BSR Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSR Real Estate has no effect on the direction of Ensign Energy i.e., Ensign Energy and BSR Real go up and down completely randomly.
Pair Corralation between Ensign Energy and BSR Real
Assuming the 90 days trading horizon Ensign Energy is expected to generate 2.34 times less return on investment than BSR Real. In addition to that, Ensign Energy is 1.65 times more volatile than BSR Real Estate. It trades about 0.01 of its total potential returns per unit of risk. BSR Real Estate is currently generating about 0.02 per unit of volatility. If you would invest 1,194 in BSR Real Estate on September 12, 2024 and sell it today you would earn a total of 106.00 from holding BSR Real Estate or generate 8.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ensign Energy Services vs. BSR Real Estate
Performance |
| Timeline |
| Ensign Energy Services |
| BSR Real Estate |
Ensign Energy and BSR Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ensign Energy and BSR Real
The main advantage of trading using opposite Ensign Energy and BSR Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ensign Energy position performs unexpectedly, BSR Real 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 BSR Real will offset losses from the drop in BSR Real's long position.| Ensign Energy vs. Precision Drilling | Ensign Energy vs. Trican Well Service | Ensign Energy vs. Calfrac Well Services | Ensign Energy vs. NuVista Energy |
| BSR Real vs. BSR Real Estate | BSR Real vs. Minto Apartment Real | BSR Real vs. European Residential Real | BSR Real vs. Killam Apartment Real |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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