Correlation Between Enerflex and Mattr Corp

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

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

Diversification Opportunities for Enerflex and Mattr Corp

0.79

Correlation Coefficient

Enerflex  Mattr Corp

Poor diversification

The 3 months correlation between Enerflex and Mattr is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Enerflex and Mattr Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattr Corp and Enerflex 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 Enerflex are associated (or correlated) with Mattr Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mattr Corp has no effect on the direction of Enerflex i.e., Enerflex and Mattr Corp go up and down completely randomly.

Pair Corralation between Enerflex and Mattr Corp

Assuming the 90 days trading horizon Enerflex is expected to generate 0.84 times more return on investment than Mattr Corp. However, Enerflex is 1.2 times less risky than Mattr Corp. It trades about 0.18 of its potential returns per unit of risk. Mattr Corp is currently generating about 0.08 per unit of risk. If you would invest  1,000.00  in Enerflex on May 10, 2025 and sell it today you would earn a total of  256.00  from holding Enerflex or generate 25.6% return on investment over 90 days.

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

Enerflex  vs.  Mattr Corp

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 unfluctuating basic indicators, Enerflex displayed solid returns over the last few months and may actually be approaching a breakup point.

Mattr Corp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Mattr Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Mattr Corp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Enerflex and Mattr Corp

The main advantage of trading using opposite Enerflex and Mattr Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enerflex position performs unexpectedly, Mattr Corp 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 Mattr Corp will offset losses from the drop in Mattr Corp's long position.

The idea behind Enerflex and Mattr Corp 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.