Correlation Between Quipt Home and Enerflex

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

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

Diversification Opportunities for Quipt Home and Enerflex

0.47

Correlation Coefficient

Quipt Home  Enerflex

Very weak diversification

The 3 months correlation between Quipt and Enerflex is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Quipt Home Medical and Enerflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerflex and Quipt Home 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 Quipt Home Medical 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 Quipt Home i.e., Quipt Home and Enerflex go up and down completely randomly.

Pair Corralation between Quipt Home and Enerflex

Assuming the 90 days trading horizon Quipt Home is expected to generate 1.74 times less return on investment than Enerflex. In addition to that, Quipt Home is 2.09 times more volatile than Enerflex. It trades about 0.07 of its total potential returns per unit of risk. Enerflex is currently generating about 0.27 per unit of volatility. If you would invest  950.00  in Enerflex on May 21, 2025 and sell it today you would earn a total of  390.00  from holding Enerflex or generate 41.05% return on investment over 90 days.

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

Quipt Home Medical  vs.  Enerflex

Quipt Home Medical

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Quipt Home Medical are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Quipt Home displayed solid returns over the last few months and may actually be approaching a breakup point.

Enerflex

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Enerflex are ranked lower than 20 (%) 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.

Pair Trading with Quipt Home and Enerflex

The main advantage of trading using opposite Quipt Home and Enerflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quipt Home 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 Quipt Home Medical 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.