Correlation Between TeraGo and Ensign Energy
Can any of the company-specific risk be diversified away by investing in both TeraGo and Ensign 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 TeraGo and Ensign Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TeraGo Inc and Ensign Energy Services, you can compare the effects of market volatilities on TeraGo and Ensign 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 TeraGo with a short position of Ensign Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of TeraGo and Ensign Energy.
Diversification Opportunities for TeraGo and Ensign Energy
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TeraGo and Ensign is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding TeraGo Inc and Ensign Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ensign Energy Services and TeraGo 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 TeraGo Inc are associated (or correlated) with Ensign Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ensign Energy Services has no effect on the direction of TeraGo i.e., TeraGo and Ensign Energy go up and down completely randomly.
Pair Corralation between TeraGo and Ensign Energy
Assuming the 90 days trading horizon TeraGo Inc is expected to under-perform the Ensign Energy. In addition to that, TeraGo is 1.21 times more volatile than Ensign Energy Services. It trades about -0.13 of its total potential returns per unit of risk. Ensign Energy Services is currently generating about 0.09 per unit of volatility. If you would invest 235.00 in Ensign Energy Services on July 26, 2025 and sell it today you would earn a total of 30.00 from holding Ensign Energy Services or generate 12.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TeraGo Inc vs. Ensign Energy Services
Performance |
| Timeline |
| TeraGo Inc |
| Ensign Energy Services |
TeraGo and Ensign Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TeraGo and Ensign Energy
The main advantage of trading using opposite TeraGo and Ensign Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TeraGo position performs unexpectedly, Ensign 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 Ensign Energy will offset losses from the drop in Ensign Energy's long position.| TeraGo vs. Corus Entertainment | TeraGo vs. ESE Entertainment | TeraGo vs. Snipp Interactive | TeraGo vs. Glacier Media |
| Ensign Energy vs. Greenfire Resources | Ensign Energy vs. Total Energy Services | Ensign Energy vs. Benchmark Metals | Ensign Energy vs. Logan Energy 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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