Correlation Between Expro Group and Enerflex
Can any of the company-specific risk be diversified away by investing in both Expro Group 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 Expro Group and Enerflex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expro Group Holdings and Enerflex, you can compare the effects of market volatilities on Expro Group 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 Expro Group with a short position of Enerflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expro Group and Enerflex.
Diversification Opportunities for Expro Group and Enerflex
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Expro and Enerflex is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Expro Group Holdings and Enerflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerflex and Expro Group 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 Expro Group Holdings 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 Expro Group i.e., Expro Group and Enerflex go up and down completely randomly.
Pair Corralation between Expro Group and Enerflex
Given the investment horizon of 90 days Expro Group is expected to generate 4.83 times less return on investment than Enerflex. In addition to that, Expro Group is 1.62 times more volatile than Enerflex. It trades about 0.1 of its total potential returns per unit of risk. Enerflex is currently generating about 0.8 per unit of volatility. If you would invest 638.00 in Enerflex on August 30, 2024 and sell it today you would earn a total of 283.00 from holding Enerflex or generate 44.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expro Group Holdings vs. Enerflex
Performance |
| Timeline |
| Expro Group Holdings |
| Enerflex |
Expro Group and Enerflex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expro Group and Enerflex
The main advantage of trading using opposite Expro Group and Enerflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expro Group 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.| Expro Group vs. ChampionX | Expro Group vs. Ranger Energy Services | Expro Group vs. Cactus Inc | Expro Group vs. MRC Global |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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