Correlation Between Enerflex and Kimbell Royalty
Can any of the company-specific risk be diversified away by investing in both Enerflex and Kimbell Royalty 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 Kimbell Royalty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enerflex and Kimbell Royalty Partners, you can compare the effects of market volatilities on Enerflex and Kimbell Royalty 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 Kimbell Royalty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enerflex and Kimbell Royalty.
Diversification Opportunities for Enerflex and Kimbell Royalty
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enerflex and Kimbell is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Enerflex and Kimbell Royalty Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimbell Royalty Partners 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 Kimbell Royalty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimbell Royalty Partners has no effect on the direction of Enerflex i.e., Enerflex and Kimbell Royalty go up and down completely randomly.
Pair Corralation between Enerflex and Kimbell Royalty
Given the investment horizon of 90 days Enerflex is expected to generate 1.4 times more return on investment than Kimbell Royalty. However, Enerflex is 1.4 times more volatile than Kimbell Royalty Partners. It trades about 0.23 of its potential returns per unit of risk. Kimbell Royalty Partners is currently generating about -0.06 per unit of risk. If you would invest 1,027 in Enerflex on September 4, 2025 and sell it today you would earn a total of 333.00 from holding Enerflex or generate 32.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enerflex vs. Kimbell Royalty Partners
Performance |
| Timeline |
| Enerflex |
| Kimbell Royalty Partners |
Enerflex and Kimbell Royalty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enerflex and Kimbell Royalty
The main advantage of trading using opposite Enerflex and Kimbell Royalty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enerflex position performs unexpectedly, Kimbell Royalty 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 Kimbell Royalty will offset losses from the drop in Kimbell Royalty's long position.| Enerflex vs. Lattice Semiconductor | Enerflex vs. Interplay Entertainment Corp | Enerflex vs. GCT Semiconductor Holding | Enerflex vs. ON Semiconductor |
| Kimbell Royalty vs. That Marketing Solution | Kimbell Royalty vs. The Hanover Insurance | Kimbell Royalty vs. H2O Retailing | Kimbell Royalty vs. Plaza Retail REIT |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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