Correlation Between CoinSmart Financial and Ensign Energy

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

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

Diversification Opportunities for CoinSmart Financial and Ensign Energy

0.0

Correlation Coefficient

CoinSmart Financial  Ensign Energy

Pay attention - limited upside

The 3 months correlation between CoinSmart and Ensign is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CoinSmart Financial 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 CoinSmart Financial 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 CoinSmart Financial 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 CoinSmart Financial i.e., CoinSmart Financial and Ensign Energy go up and down completely randomly.

Pair Corralation between CoinSmart Financial and Ensign Energy

If you would invest  22.00  in CoinSmart Financial on December 25, 2024 and sell it today you would earn a total of  0.00  from holding CoinSmart Financial or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CoinSmart Financial  vs.  Ensign Energy Services

CoinSmart Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days CoinSmart Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, CoinSmart Financial is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Ensign Energy Services

Risk-Adjusted Performance

Very Weak

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

Pair Trading with CoinSmart Financial and Ensign Energy

The main advantage of trading using opposite CoinSmart Financial and Ensign Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CoinSmart Financial 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 CoinSmart Financial 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.