Correlation Between Mako Mining and Enerflex
Can any of the company-specific risk be diversified away by investing in both Mako Mining 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 Mako Mining and Enerflex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mako Mining Corp and Enerflex, you can compare the effects of market volatilities on Mako Mining 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 Mako Mining with a short position of Enerflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mako Mining and Enerflex.
Diversification Opportunities for Mako Mining and Enerflex
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mako and Enerflex is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp and Enerflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerflex and Mako Mining 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 Mako Mining Corp 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 Mako Mining i.e., Mako Mining and Enerflex go up and down completely randomly.
Pair Corralation between Mako Mining and Enerflex
Assuming the 90 days horizon Mako Mining Corp is expected to under-perform the Enerflex. But the stock apears to be less risky and, when comparing its historical volatility, Mako Mining Corp is 1.55 times less risky than Enerflex. The stock trades about -0.03 of its potential returns per unit of risk. The Enerflex is currently generating about 0.63 of returns per unit of risk over similar time horizon. If you would invest 1,005 in Enerflex on September 12, 2024 and sell it today you would earn a total of 356.00 from holding Enerflex or generate 35.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mako Mining Corp vs. Enerflex
Performance |
| Timeline |
| Mako Mining Corp |
| Enerflex |
Mako Mining and Enerflex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mako Mining and Enerflex
The main advantage of trading using opposite Mako Mining and Enerflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mako Mining 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.| Mako Mining vs. Thor Explorations | Mako Mining vs. K2 Gold | Mako Mining vs. Loncor Resources | Mako Mining vs. Sarama Resource |
| Enerflex vs. Richelieu Hardware | Enerflex vs. Mako Mining Corp | Enerflex vs. Getty Copper | Enerflex vs. Algonquin Power Utilities |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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