Correlation Between Shawcor and Enerflex
Can any of the company-specific risk be diversified away by investing in both Shawcor 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 Shawcor and Enerflex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shawcor and Enerflex, you can compare the effects of market volatilities on Shawcor 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 Shawcor with a short position of Enerflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shawcor and Enerflex.
Diversification Opportunities for Shawcor and Enerflex
Almost no diversification
The 3 months correlation between Shawcor and Enerflex is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shawcor and Enerflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerflex and Shawcor 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 Shawcor 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 Shawcor i.e., Shawcor and Enerflex go up and down completely randomly.
Pair Corralation between Shawcor and Enerflex
If you would invest 724.00 in Enerflex on September 12, 2024 and sell it today you would earn a total of 240.00 from holding Enerflex or generate 33.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
Shawcor vs. Enerflex
Performance |
| Timeline |
| Shawcor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Enerflex |
Shawcor and Enerflex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shawcor and Enerflex
The main advantage of trading using opposite Shawcor and Enerflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shawcor 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.| Shawcor vs. STEP Energy Services | Shawcor vs. Total Energy Services | Shawcor vs. Trican Well Service | Shawcor vs. High Arctic Energy |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |