Correlation Between Strainsforpains and Enerflex

Can any of the company-specific risk be diversified away by investing in both Strainsforpains 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 Strainsforpains and Enerflex into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Strainsforpains and Enerflex, you can compare the effects of market volatilities on Strainsforpains 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 Strainsforpains with a short position of Enerflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strainsforpains and Enerflex.

Diversification Opportunities for Strainsforpains and Enerflex

0.0

Correlation Coefficient

Strainsforpains  Enerflex

Pay attention - limited upside

The 3 months correlation between Strainsforpains and Enerflex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Strainsforpains and Enerflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerflex and Strainsforpains 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 Strainsforpains 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 Strainsforpains i.e., Strainsforpains and Enerflex go up and down completely randomly.

Pair Corralation between Strainsforpains and Enerflex

If you would invest  508.00  in Enerflex on February 17, 2024 and sell it today you would lose (1.00) from holding Enerflex or give up 0.2% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Strainsforpains  vs.  Enerflex

Strainsforpains

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Strainsforpains has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Strainsforpains is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Enerflex

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Enerflex are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Enerflex is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Strainsforpains and Enerflex

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

The idea behind Strainsforpains and Enerflex 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.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.