Correlation Between Pason Systems and Enerflex
Can any of the company-specific risk be diversified away by investing in both Pason Systems and Enerflex 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 Pason Systems and Enerflex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pason Systems and Enerflex, you can compare the effects of market volatilities on Pason Systems and Enerflex 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 Pason Systems with a short position of Enerflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pason Systems and Enerflex.
Diversification Opportunities for Pason Systems and Enerflex
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pason and Enerflex is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Pason Systems and Enerflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerflex and Pason Systems 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 Pason Systems are associated (or correlated) with Enerflex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enerflex has no effect on the direction of Pason Systems i.e., Pason Systems and Enerflex go up and down completely randomly.
Pair Corralation between Pason Systems and Enerflex
Assuming the 90 days trading horizon Pason Systems is expected to under-perform the Enerflex. But the stock apears to be less risky and, when comparing its historical volatility, Pason Systems is 1.56 times less risky than Enerflex. The stock trades about -0.01 of its potential returns per unit of risk. The Enerflex is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,095 in Enerflex on July 20, 2025 and sell it today you would earn a total of 414.00 from holding Enerflex or generate 37.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pason Systems vs. Enerflex
Performance |
| Timeline |
| Pason Systems |
| Enerflex |
Pason Systems and Enerflex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pason Systems and Enerflex
The main advantage of trading using opposite Pason Systems and Enerflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pason Systems position performs unexpectedly, Enerflex 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 Enerflex will offset losses from the drop in Enerflex's long position.| Pason Systems vs. Trican Well Service | Pason Systems vs. Precision Drilling | Pason Systems vs. Kiwetinohk Energy Corp | Pason Systems vs. Mattr Corp |
| Enerflex vs. CES Energy Solutions | Enerflex vs. Parex Resources | Enerflex vs. Headwater Exploration | Enerflex vs. Advantage Oil Gas |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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