Correlation Between HudBay Minerals and Ensign Energy
Can any of the company-specific risk be diversified away by investing in both HudBay Minerals and Ensign Energy 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 HudBay Minerals and Ensign Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HudBay Minerals and Ensign Energy Services, you can compare the effects of market volatilities on HudBay Minerals and Ensign Energy 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 HudBay Minerals with a short position of Ensign Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of HudBay Minerals and Ensign Energy.
Diversification Opportunities for HudBay Minerals and Ensign Energy
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HudBay and Ensign is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding HudBay Minerals and Ensign Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ensign Energy Services and HudBay Minerals 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 HudBay Minerals are associated (or correlated) with Ensign Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ensign Energy Services has no effect on the direction of HudBay Minerals i.e., HudBay Minerals and Ensign Energy go up and down completely randomly.
Pair Corralation between HudBay Minerals and Ensign Energy
Assuming the 90 days trading horizon HudBay Minerals is expected to under-perform the Ensign Energy. In addition to that, HudBay Minerals is 1.27 times more volatile than Ensign Energy Services. It trades about -0.1 of its total potential returns per unit of risk. Ensign Energy Services is currently generating about 0.17 per unit of volatility. If you would invest 269.00 in Ensign Energy Services on August 30, 2024 and sell it today you would earn a total of 22.00 from holding Ensign Energy Services or generate 8.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HudBay Minerals vs. Ensign Energy Services
Performance |
| Timeline |
| HudBay Minerals |
| Ensign Energy Services |
HudBay Minerals and Ensign Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HudBay Minerals and Ensign Energy
The main advantage of trading using opposite HudBay Minerals and Ensign Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HudBay Minerals position performs unexpectedly, Ensign Energy 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 Ensign Energy will offset losses from the drop in Ensign Energy's long position.| HudBay Minerals vs. Lundin Mining | HudBay Minerals vs. First Quantum Minerals | HudBay Minerals vs. Ivanhoe Mines | HudBay Minerals vs. Capstone Mining Corp |
| Ensign Energy vs. Precision Drilling | Ensign Energy vs. Trican Well Service | Ensign Energy vs. Calfrac Well Services | Ensign Energy vs. NuVista Energy |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |