Correlation Between Crescent Energy and Enerflex

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Can any of the company-specific risk be diversified away by investing in both Crescent 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 Crescent Energy and Enerflex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crescent Energy Co and Enerflex, you can compare the effects of market volatilities on Crescent 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 Crescent Energy with a short position of Enerflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crescent Energy and Enerflex.

Diversification Opportunities for Crescent Energy and Enerflex

-0.19
  Correlation Coefficient

Good diversification

The 3 months correlation between Crescent and Enerflex is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Crescent Energy Co and Enerflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerflex and Crescent 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 Crescent Energy Co 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 Crescent Energy i.e., Crescent Energy and Enerflex go up and down completely randomly.

Pair Corralation between Crescent Energy and Enerflex

Given the investment horizon of 90 days Crescent Energy is expected to generate 68.03 times less return on investment than Enerflex. In addition to that, Crescent Energy is 1.76 times more volatile than Enerflex. It trades about 0.0 of its total potential returns per unit of risk. Enerflex is currently generating about 0.25 per unit of volatility. If you would invest  1,005  in Enerflex on August 28, 2025 and sell it today you would earn a total of  368.00  from holding Enerflex or generate 36.62% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Crescent Energy Co  vs.  Enerflex

 Performance 
       Timeline  
Crescent Energy 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Over the last 90 days Crescent Energy Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Crescent Energy is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Enerflex 

Risk-Adjusted Performance

Solid

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

Crescent Energy and Enerflex Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Crescent Energy and Enerflex

The main advantage of trading using opposite Crescent Energy and Enerflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crescent 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.
The idea behind Crescent Energy Co 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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