Correlation Between Enerflex and Expro Group

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

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

Diversification Opportunities for Enerflex and Expro Group

0.92

Correlation Coefficient

Enerflex  Expro Group

Almost no diversification

The 3 months correlation between Enerflex and Expro is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Enerflex and Expro Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expro Group Holdings 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 Expro Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expro Group Holdings has no effect on the direction of Enerflex i.e., Enerflex and Expro Group go up and down completely randomly.

Pair Corralation between Enerflex and Expro Group

Given the investment horizon of 90 days Enerflex is expected to generate 0.71 times more return on investment than Expro Group. However, Enerflex is 1.4 times less risky than Expro Group. It trades about -0.15 of its potential returns per unit of risk. Expro Group Holdings is currently generating about -0.14 per unit of risk. If you would invest  966.00  in Enerflex on January 29, 2025 and sell it today you would lose (300.00) from holding Enerflex or give up 31.06% of portfolio value over 90 days.

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

Enerflex  vs.  Expro Group Holdings

Enerflex

Risk-Adjusted Performance

Very Weak

Over the last 90 days Enerflex 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 comparatively stable which may send shares a bit higher in May 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Expro Group Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Expro Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in May 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Enerflex and Expro Group

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

The idea behind Enerflex and Expro Group Holdings 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.