Correlation Between ProFrac Holding and Enservco

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

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

Diversification Opportunities for ProFrac Holding and Enservco

0.0

Correlation Coefficient

ProFrac Holding  Enservco

Pay attention - limited upside

The 3 months correlation between ProFrac and Enservco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ProFrac Holding Corp and Enservco Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enservco and ProFrac Holding 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 ProFrac Holding Corp are associated (or correlated) with Enservco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enservco has no effect on the direction of ProFrac Holding i.e., ProFrac Holding and Enservco go up and down completely randomly.

Pair Corralation between ProFrac Holding and Enservco

If you would invest (100.00) in Enservco Co on November 28, 2024 and sell it today you would earn a total of  100.00  from holding Enservco Co or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ProFrac Holding Corp  vs.  Enservco Co

ProFrac Holding Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days ProFrac Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Enservco

Risk-Adjusted Performance

Very Weak

Over the last 90 days Enservco Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Enservco is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with ProFrac Holding and Enservco

The main advantage of trading using opposite ProFrac Holding and Enservco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProFrac Holding position performs unexpectedly, Enservco 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 Enservco will offset losses from the drop in Enservco's long position.

The idea behind ProFrac Holding Corp and Enservco Co 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.