Correlation Between Constellation Software and Ensign Energy
Can any of the company-specific risk be diversified away by investing in both Constellation Software and Ensign Energy 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 Constellation Software and Ensign Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Constellation Software and Ensign Energy Services, you can compare the effects of market volatilities on Constellation Software and Ensign Energy 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 Constellation Software with a short position of Ensign Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Constellation Software and Ensign Energy.
Diversification Opportunities for Constellation Software and Ensign Energy
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Constellation and Ensign is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Constellation Software and Ensign Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ensign Energy Services and Constellation Software 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 Constellation Software are associated (or correlated) with Ensign Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ensign Energy Services has no effect on the direction of Constellation Software i.e., Constellation Software and Ensign Energy go up and down completely randomly.
Pair Corralation between Constellation Software and Ensign Energy
Assuming the 90 days trading horizon Constellation Software is expected to under-perform the Ensign Energy. But the stock apears to be less risky and, when comparing its historical volatility, Constellation Software is 1.1 times less risky than Ensign Energy. The stock trades about -0.16 of its potential returns per unit of risk. The Ensign Energy Services is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 225.00 in Ensign Energy Services on July 20, 2025 and sell it today you would earn a total of 10.00 from holding Ensign Energy Services or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Constellation Software vs. Ensign Energy Services
Performance |
| Timeline |
| Constellation Software |
| Ensign Energy Services |
Constellation Software and Ensign Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Constellation Software and Ensign Energy
The main advantage of trading using opposite Constellation Software and Ensign Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Constellation Software position performs unexpectedly, Ensign Energy 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 Ensign Energy will offset losses from the drop in Ensign Energy's long position.| Constellation Software vs. Open Text Corp | Constellation Software vs. Intermap Technologies Corp | Constellation Software vs. Descartes Systems Group | Constellation Software vs. TECSYS Inc |
| Ensign Energy vs. Greenfire Resources | Ensign Energy vs. Total Energy Services | Ensign Energy vs. Benchmark Metals | Ensign Energy vs. Logan Energy Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |