Correlation Between Quarterhill and Enerflex
Can any of the company-specific risk be diversified away by investing in both Quarterhill 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 Quarterhill and Enerflex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quarterhill and Enerflex, you can compare the effects of market volatilities on Quarterhill 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 Quarterhill with a short position of Enerflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quarterhill and Enerflex.
Diversification Opportunities for Quarterhill and Enerflex
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Quarterhill and Enerflex is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Quarterhill and Enerflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerflex and Quarterhill 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 Quarterhill 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 Quarterhill i.e., Quarterhill and Enerflex go up and down completely randomly.
Pair Corralation between Quarterhill and Enerflex
Assuming the 90 days trading horizon Quarterhill is expected to under-perform the Enerflex. In addition to that, Quarterhill is 1.08 times more volatile than Enerflex. It trades about -0.03 of its total potential returns per unit of risk. Enerflex is currently generating about 0.23 per unit of volatility. If you would invest 696.00 in Enerflex on August 24, 2024 and sell it today you would earn a total of 593.00 from holding Enerflex or generate 85.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quarterhill vs. Enerflex
Performance |
| Timeline |
| Quarterhill |
| Enerflex |
Quarterhill and Enerflex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quarterhill and Enerflex
The main advantage of trading using opposite Quarterhill and Enerflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quarterhill 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.| Quarterhill vs. Real Matters | Quarterhill vs. TECSYS Inc | Quarterhill vs. Enghouse Systems | Quarterhill vs. Pulse Seismic |
| Enerflex vs. Pollard Banknote Limited | Enerflex vs. Postmedia Network Canada | Enerflex vs. First National Financial | Enerflex vs. DIRTT Environmental Solutions |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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