Correlation Between TeraGo and Ensign Energy

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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 Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

TeraGo Inc  vs.  Ensign Energy Services

 Performance 
       Timeline  
TeraGo Inc 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days TeraGo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in November 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
Ensign Energy Services 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Ensign Energy Services are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, Ensign Energy displayed solid returns over the last few months and may actually be approaching a breakup point.

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.
The idea behind TeraGo Inc and Ensign Energy Services pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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