Correlation Between Enerflex and Northern Oil
Can any of the company-specific risk be diversified away by investing in both Enerflex and Northern Oil 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 Northern Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enerflex and Northern Oil Gas, you can compare the effects of market volatilities on Enerflex and Northern Oil 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 Northern Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enerflex and Northern Oil.
Diversification Opportunities for Enerflex and Northern Oil
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enerflex and Northern is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Enerflex and Northern Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Oil Gas 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 Northern Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Oil Gas has no effect on the direction of Enerflex i.e., Enerflex and Northern Oil go up and down completely randomly.
Pair Corralation between Enerflex and Northern Oil
Given the investment horizon of 90 days Enerflex is expected to generate 0.73 times more return on investment than Northern Oil. However, Enerflex is 1.36 times less risky than Northern Oil. It trades about 0.25 of its potential returns per unit of risk. Northern Oil Gas is currently generating about -0.09 per unit of risk. If you would invest 1,022 in Enerflex on August 31, 2025 and sell it today you would earn a total of 377.00 from holding Enerflex or generate 36.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Enerflex vs. Northern Oil Gas
Performance |
| Timeline |
| Enerflex |
| Northern Oil Gas |
Enerflex and Northern Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enerflex and Northern Oil
The main advantage of trading using opposite Enerflex and Northern Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enerflex position performs unexpectedly, Northern Oil 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 Northern Oil will offset losses from the drop in Northern Oil's long position.| Enerflex vs. Franklin Wireless Corp | Enerflex vs. Nordic Semiconductor ASA | Enerflex vs. Elmos Semiconductor SE | Enerflex vs. BJs Restaurants |
| Northern Oil vs. Heritage Insurance Hldgs | Northern Oil vs. Algonquin Power Utilities | Northern Oil vs. United Airlines Holdings | Northern Oil vs. Aegean Airlines SA |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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