Correlation Between Ensign Energy and Total Energy
Can any of the company-specific risk be diversified away by investing in both Ensign Energy and Total 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 Ensign Energy and Total Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ensign Energy Services and Total Energy Services, you can compare the effects of market volatilities on Ensign Energy and Total 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 Ensign Energy with a short position of Total Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ensign Energy and Total Energy.
Diversification Opportunities for Ensign Energy and Total Energy
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ensign and Total is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ensign Energy Services and Total Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Energy Services and Ensign 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 Ensign Energy Services are associated (or correlated) with Total Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Energy Services has no effect on the direction of Ensign Energy i.e., Ensign Energy and Total Energy go up and down completely randomly.
Pair Corralation between Ensign Energy and Total Energy
Assuming the 90 days trading horizon Ensign Energy is expected to generate 1.89 times less return on investment than Total Energy. In addition to that, Ensign Energy is 1.46 times more volatile than Total Energy Services. It trades about 0.08 of its total potential returns per unit of risk. Total Energy Services is currently generating about 0.22 per unit of volatility. If you would invest 1,109 in Total Energy Services on July 27, 2025 and sell it today you would earn a total of 294.00 from holding Total Energy Services or generate 26.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ensign Energy Services vs. Total Energy Services
Performance |
| Timeline |
| Ensign Energy Services |
| Total Energy Services |
Ensign Energy and Total Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ensign Energy and Total Energy
The main advantage of trading using opposite Ensign Energy and Total Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ensign Energy position performs unexpectedly, Total 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 Total Energy will offset losses from the drop in Total Energy's long position.| Ensign Energy vs. Greenfire Resources | Ensign Energy vs. Total Energy Services | Ensign Energy vs. Benchmark Metals | Ensign Energy vs. Logan Energy Corp |
| Total Energy vs. Ensign Energy Services | Total Energy vs. Saturn Oil Gas | Total Energy vs. North American Construction | Total Energy vs. Greenfire 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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