Correlation Between Ranger Energy and Enerflex
Can any of the company-specific risk be diversified away by investing in both Ranger Energy 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 Ranger Energy and Enerflex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ranger Energy Services and Enerflex, you can compare the effects of market volatilities on Ranger Energy 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 Ranger Energy with a short position of Enerflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ranger Energy and Enerflex.
Diversification Opportunities for Ranger Energy and Enerflex
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ranger and Enerflex is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ranger Energy Services and Enerflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerflex and Ranger Energy 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 Ranger Energy Services 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 Ranger Energy i.e., Ranger Energy and Enerflex go up and down completely randomly.
Pair Corralation between Ranger Energy and Enerflex
Given the investment horizon of 90 days Ranger Energy Services is expected to under-perform the Enerflex. But the stock apears to be less risky and, when comparing its historical volatility, Ranger Energy Services is 1.19 times less risky than Enerflex. The stock trades about -0.04 of its potential returns per unit of risk. The Enerflex is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 565.00 in Enerflex on July 4, 2024 and sell it today you would earn a total of 71.00 from holding Enerflex or generate 12.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ranger Energy Services vs. Enerflex
Performance |
Timeline |
Ranger Energy Services |
Enerflex |
Ranger Energy and Enerflex Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ranger Energy and Enerflex
The main advantage of trading using opposite Ranger Energy and Enerflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ranger Energy 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.Ranger Energy vs. Ecovyst | Ranger Energy vs. Cabot | Ranger Energy vs. Westlake Chemical | Ranger Energy vs. Sensient Technologies |
Enerflex vs. Natural Gas Services | Enerflex vs. Archrock | Enerflex vs. Geospace Technologies | Enerflex vs. Newpark Resources |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |