Correlation Between Nine Energy and Enservco
Can any of the company-specific risk be diversified away by investing in both Nine Energy and Enservco 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 Nine Energy and Enservco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nine Energy Service and Enservco Co, you can compare the effects of market volatilities on Nine Energy and Enservco 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 Nine Energy with a short position of Enservco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nine Energy and Enservco.
Diversification Opportunities for Nine Energy and Enservco
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nine and Enservco is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Nine Energy Service and Enservco Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enservco and Nine 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 Nine Energy Service are associated (or correlated) with Enservco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enservco has no effect on the direction of Nine Energy i.e., Nine Energy and Enservco go up and down completely randomly.
Pair Corralation between Nine Energy and Enservco
If you would invest 123.00 in Nine Energy Service on November 2, 2024 and sell it today you would lose (1.00) from holding Nine Energy Service or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Nine Energy Service vs. Enservco Co
Performance |
| Timeline |
| Nine Energy Service |
| Enservco |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nine Energy and Enservco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nine Energy and Enservco
The main advantage of trading using opposite Nine Energy and Enservco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nine Energy position performs unexpectedly, Enservco 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 Enservco will offset losses from the drop in Enservco's long position.| Nine Energy vs. Liberty Oilfield Services | Nine Energy vs. ProFrac Holding Corp | Nine Energy vs. Helix Energy Solutions | Nine Energy vs. Enerflex |
| Enservco vs. Houston American Energy | Enservco vs. Indonesia Energy | Enservco vs. Imperial Petroleum | Enservco vs. Nine Energy Service |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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