Correlation Between Getty Copper and Enerflex
Can any of the company-specific risk be diversified away by investing in both Getty Copper 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 Getty Copper and Enerflex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Copper and Enerflex, you can compare the effects of market volatilities on Getty Copper 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 Getty Copper with a short position of Enerflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Copper and Enerflex.
Diversification Opportunities for Getty Copper and Enerflex
-0.95 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Getty and Enerflex is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding Getty Copper and Enerflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerflex and Getty Copper 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 Getty Copper 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 Getty Copper i.e., Getty Copper and Enerflex go up and down completely randomly.
Pair Corralation between Getty Copper and Enerflex
Assuming the 90 days horizon Getty Copper is expected to under-perform the Enerflex. In addition to that, Getty Copper is 1.93 times more volatile than Enerflex. It trades about -0.21 of its total potential returns per unit of risk. Enerflex is currently generating about 0.58 per unit of volatility. If you would invest 1,039 in Enerflex on September 13, 2024 and sell it today you would earn a total of 327.00 from holding Enerflex or generate 31.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getty Copper vs. Enerflex
Performance |
| Timeline |
| Getty Copper |
| Enerflex |
Getty Copper and Enerflex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Copper and Enerflex
The main advantage of trading using opposite Getty Copper and Enerflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Copper 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.| Getty Copper vs. Foraco International SA | Getty Copper vs. Geodrill Limited | Getty Copper vs. Major Drilling Group | Getty Copper vs. Bri Chem Corp |
| Enerflex vs. Data Communications Management | Enerflex vs. Nicola Mining | Enerflex vs. Globex Mining Enterprises | Enerflex vs. CVS HEALTH CDR |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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