Correlation Between Horizon Kinetics and Enerflex
Can any of the company-specific risk be diversified away by investing in both Horizon Kinetics 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 Horizon Kinetics and Enerflex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Horizon Kinetics Inflation and Enerflex, you can compare the effects of market volatilities on Horizon Kinetics 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 Horizon Kinetics with a short position of Enerflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horizon Kinetics and Enerflex.
Diversification Opportunities for Horizon Kinetics and Enerflex
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Horizon and Enerflex is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Kinetics Inflation and Enerflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerflex and Horizon Kinetics 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 Horizon Kinetics Inflation 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 Horizon Kinetics i.e., Horizon Kinetics and Enerflex go up and down completely randomly.
Pair Corralation between Horizon Kinetics and Enerflex
Given the investment horizon of 90 days Horizon Kinetics is expected to generate 1.95 times less return on investment than Enerflex. But when comparing it to its historical volatility, Horizon Kinetics Inflation is 3.28 times less risky than Enerflex. It trades about 0.08 of its potential returns per unit of risk. Enerflex is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 589.00 in Enerflex on August 30, 2024 and sell it today you would earn a total of 336.00 from holding Enerflex or generate 57.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Horizon Kinetics Inflation vs. Enerflex
Performance |
| Timeline |
| Horizon Kinetics Inf |
| Enerflex |
Horizon Kinetics and Enerflex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Horizon Kinetics and Enerflex
The main advantage of trading using opposite Horizon Kinetics and Enerflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horizon Kinetics 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.| Horizon Kinetics vs. Global X Conscious | Horizon Kinetics vs. Global X SP | Horizon Kinetics vs. Global X Millennials | Horizon Kinetics vs. Global X MSCI |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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