Correlation Between Trican Well and EnCore Energy
Can any of the company-specific risk be diversified away by investing in both Trican Well and EnCore Energy 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 Trican Well and EnCore Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trican Well Service and enCore Energy Corp, you can compare the effects of market volatilities on Trican Well and EnCore Energy 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 Trican Well with a short position of EnCore Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trican Well and EnCore Energy.
Diversification Opportunities for Trican Well and EnCore Energy
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Trican and EnCore is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Trican Well Service and enCore Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on enCore Energy Corp and Trican Well 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 Trican Well Service are associated (or correlated) with EnCore Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of enCore Energy Corp has no effect on the direction of Trican Well i.e., Trican Well and EnCore Energy go up and down completely randomly.
Pair Corralation between Trican Well and EnCore Energy
Assuming the 90 days trading horizon Trican Well Service is expected to under-perform the EnCore Energy. But the stock apears to be less risky and, when comparing its historical volatility, Trican Well Service is 1.84 times less risky than EnCore Energy. The stock trades about -0.01 of its potential returns per unit of risk. The enCore Energy Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 487.00 in enCore Energy Corp on August 28, 2024 and sell it today you would earn a total of 42.00 from holding enCore Energy Corp or generate 8.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trican Well Service vs. enCore Energy Corp
Performance |
| Timeline |
| Trican Well Service |
| enCore Energy Corp |
Trican Well and EnCore Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trican Well and EnCore Energy
The main advantage of trading using opposite Trican Well and EnCore Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trican Well position performs unexpectedly, EnCore Energy 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 EnCore Energy will offset losses from the drop in EnCore Energy's long position.| Trican Well vs. Calfrac Well Services | Trican Well vs. Precision Drilling | Trican Well vs. Ensign Energy Services | Trican Well vs. Birchcliff Energy |
| EnCore Energy vs. Global Atomic Corp | EnCore Energy vs. Fission 30 Corp | EnCore Energy vs. GoviEx Uranium | EnCore Energy vs. Anfield 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |