Correlation Between NGL Energy and EnCore Energy
Can any of the company-specific risk be diversified away by investing in both NGL Energy and EnCore 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 NGL Energy and EnCore Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NGL Energy Partners and enCore Energy Corp, you can compare the effects of market volatilities on NGL Energy and EnCore 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 NGL Energy with a short position of EnCore Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of NGL Energy and EnCore Energy.
Diversification Opportunities for NGL Energy and EnCore Energy
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NGL and EnCore is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding NGL Energy Partners and enCore Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on enCore Energy Corp and NGL 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 NGL Energy Partners are associated (or correlated) with EnCore Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of enCore Energy Corp has no effect on the direction of NGL Energy i.e., NGL Energy and EnCore Energy go up and down completely randomly.
Pair Corralation between NGL Energy and EnCore Energy
Considering the 90-day investment horizon NGL Energy Partners is expected to generate 0.62 times more return on investment than EnCore Energy. However, NGL Energy Partners is 1.61 times less risky than EnCore Energy. It trades about 0.22 of its potential returns per unit of risk. enCore Energy Corp is currently generating about 0.01 per unit of risk. If you would invest 426.00 in NGL Energy Partners on July 25, 2025 and sell it today you would earn a total of 222.00 from holding NGL Energy Partners or generate 52.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NGL Energy Partners vs. enCore Energy Corp
Performance |
| Timeline |
| NGL Energy Partners |
| enCore Energy Corp |
NGL Energy and EnCore Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NGL Energy and EnCore Energy
The main advantage of trading using opposite NGL Energy and EnCore Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NGL Energy position performs unexpectedly, EnCore 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 EnCore Energy will offset losses from the drop in EnCore Energy's long position.| NGL Energy vs. New World Brands | NGL Energy vs. Star Entertainment Group | NGL Energy vs. Pta Holdings In | NGL Energy vs. Bolivar Mining Corp |
| EnCore Energy vs. Ur Energy | EnCore Energy vs. IsoEnergy | EnCore Energy vs. NGL Energy Partners | EnCore Energy vs. Uranium Royalty 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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