Correlation Between Enerflex and Sable Offshore

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

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

Diversification Opportunities for Enerflex and Sable Offshore

-0.86

Correlation Coefficient

Enerflex  Sable Offshore

Pay attention - limited upside

The 3 months correlation between Enerflex and Sable is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Enerflex and Sable Offshore Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sable Offshore 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 Sable Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sable Offshore Corp has no effect on the direction of Enerflex i.e., Enerflex and Sable Offshore go up and down completely randomly.

Pair Corralation between Enerflex and Sable Offshore

Given the investment horizon of 90 days Enerflex is expected to generate 0.22 times more return on investment than Sable Offshore. However, Enerflex is 4.49 times less risky than Sable Offshore. It trades about 0.28 of its potential returns per unit of risk. Sable Offshore Corp is currently generating about -0.15 per unit of risk. If you would invest  1,075  in Enerflex on September 16, 2025 and sell it today you would earn a total of  501.00  from holding Enerflex or generate 46.6% return on investment over 90 days.

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

Enerflex  vs.  Sable Offshore Corp

Enerflex

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Enerflex are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Enerflex unveiled solid returns over the last few months and may actually be approaching a breakup point.

Sable Offshore Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Sable Offshore Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Enerflex and Sable Offshore

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

The idea behind Enerflex and Sable Offshore 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.

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