Correlation Between Enservco and Expro Group

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

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

Diversification Opportunities for Enservco and Expro Group

-0.17

Correlation Coefficient

Enservco  Expro Group

Good diversification

The 3 months correlation between Enservco and Expro is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Enservco Co and Expro Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expro Group Holdings and Enservco 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 Enservco Co are associated (or correlated) with Expro Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expro Group Holdings has no effect on the direction of Enservco i.e., Enservco and Expro Group go up and down completely randomly.

Pair Corralation between Enservco and Expro Group

Given the investment horizon of 90 days Enservco Co is expected to under-perform the Expro Group. In addition to that, Enservco is 5.78 times more volatile than Expro Group Holdings. It trades about -0.47 of its total potential returns per unit of risk. Expro Group Holdings is currently generating about 0.04 per unit of volatility. If you would invest  1,337  in Expro Group Holdings on October 25, 2024 and sell it today you would earn a total of  65.00  from holding Expro Group Holdings or generate 4.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	16.67%
Values	Daily Returns

Enservco Co  vs.  Expro Group Holdings

Enservco

Risk-Adjusted Performance

0 of 100

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 weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Expro Group Holdings

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Expro Group Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Expro Group may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Enservco and Expro Group

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

The idea behind Enservco Co and Expro Group Holdings 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 Global Correlations module to find global opportunities by holding instruments from different markets.