Correlation Between Mattr Corp and Enerflex

Can any of the company-specific risk be diversified away by investing in both Mattr Corp 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 Mattr Corp and Enerflex into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mattr Corp and Enerflex, you can compare the effects of market volatilities on Mattr Corp 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 Mattr Corp with a short position of Enerflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mattr Corp and Enerflex.

Diversification Opportunities for Mattr Corp and Enerflex

0.85

Correlation Coefficient

Mattr Corp  Enerflex

Very poor diversification

The 3 months correlation between Mattr and Enerflex is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Mattr Corp and Enerflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerflex and Mattr Corp 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 Mattr Corp 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 Mattr Corp i.e., Mattr Corp and Enerflex go up and down completely randomly.

Pair Corralation between Mattr Corp and Enerflex

Assuming the 90 days trading horizon Mattr Corp is expected to under-perform the Enerflex. In addition to that, Mattr Corp is 1.18 times more volatile than Enerflex. It trades about -0.01 of its total potential returns per unit of risk. Enerflex is currently generating about 0.08 per unit of volatility. If you would invest  684.00  in Enerflex on April 21, 2025 and sell it today you would earn a total of  409.00  from holding Enerflex or generate 59.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Mattr Corp  vs.  Enerflex

Mattr Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mattr Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Mattr Corp displayed solid returns over the last few months and may actually be approaching a breakup point.

Enerflex

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Enerflex are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Enerflex displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mattr Corp and Enerflex

The main advantage of trading using opposite Mattr Corp and Enerflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mattr Corp 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.

The idea behind Mattr Corp and Enerflex 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.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.