Correlation Between Altus Group and Enerflex

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

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

Diversification Opportunities for Altus Group and Enerflex

0.31

Correlation Coefficient

Altus Group  Enerflex

Weak diversification

The 3 months correlation between Altus and Enerflex is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Altus Group Limited and Enerflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerflex and Altus 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 Altus Group Limited 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 Altus Group i.e., Altus Group and Enerflex go up and down completely randomly.

Pair Corralation between Altus Group and Enerflex

Assuming the 90 days trading horizon Altus Group is expected to generate 1.88 times less return on investment than Enerflex. But when comparing it to its historical volatility, Altus Group Limited is 1.53 times less risky than Enerflex. It trades about 0.15 of its potential returns per unit of risk. Enerflex is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  908.00  in Enerflex on May 3, 2025 and sell it today you would earn a total of  197.00  from holding Enerflex or generate 21.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Altus Group Limited  vs.  Enerflex

Altus Group Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Altus Group Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Altus Group may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Enerflex

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Enerflex are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Enerflex displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Altus Group and Enerflex

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

The idea behind Altus Group Limited 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.

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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.