Correlation Between Expro Group and Enservco

Can any of the company-specific risk be diversified away by investing in both Expro Group 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 Expro Group and Enservco 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 Enservco Co, you can compare the effects of market volatilities on Expro Group 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 Expro Group with a short position of Enservco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expro Group and Enservco.

Diversification Opportunities for Expro Group and Enservco

0.47

Correlation Coefficient

Expro Group  Enservco

Very weak diversification

The 3 months correlation between Expro and Enservco is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Expro Group Holdings and Enservco Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enservco 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 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 Expro Group i.e., Expro Group and Enservco go up and down completely randomly.

Pair Corralation between Expro Group and Enservco

Given the investment horizon of 90 days Expro Group Holdings is expected to generate 0.36 times more return on investment than Enservco. However, Expro Group Holdings is 2.75 times less risky than Enservco. It trades about 0.12 of its potential returns per unit of risk. Enservco Co is currently generating about 0.02 per unit of risk. If you would invest  1,482  in Expro Group Holdings on March 11, 2024 and sell it today you would earn a total of  551.00  from holding Expro Group Holdings or generate 37.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.2%
Values	Daily Returns

Expro Group Holdings  vs.  Enservco Co

Expro Group Holdings

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Expro Group Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Expro Group may actually be approaching a critical reversion point that can send shares even higher in July 2024.

Enservco

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Enservco Co are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Enservco showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Expro Group and Enservco

The main advantage of trading using opposite Expro Group and Enservco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expro Group 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.

The idea behind Expro Group Holdings and Enservco Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.