Correlation Between ProFrac Holding and NR Old
Can any of the company-specific risk be diversified away by investing in both ProFrac Holding and NR Old 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 NR Old 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 NR Old, you can compare the effects of market volatilities on ProFrac Holding and NR Old 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 NR Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProFrac Holding and NR Old.
Diversification Opportunities for ProFrac Holding and NR Old
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ProFrac and NR Old is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding ProFrac Holding Corp and NR Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NR Old 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 NR Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NR Old has no effect on the direction of ProFrac Holding i.e., ProFrac Holding and NR Old go up and down completely randomly.
Pair Corralation between ProFrac Holding and NR Old
If you would invest 724.00 in NR Old on November 3, 2024 and sell it today you would earn a total of 0.00 from holding NR Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
ProFrac Holding Corp vs. NR Old
Performance |
| Timeline |
| ProFrac Holding Corp |
| NR Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
ProFrac Holding and NR Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProFrac Holding and NR Old
The main advantage of trading using opposite ProFrac Holding and NR Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProFrac Holding position performs unexpectedly, NR Old 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 NR Old will offset losses from the drop in NR Old's long position.| ProFrac Holding vs. Natural Gas Services | ProFrac Holding vs. Geospace Technologies | ProFrac Holding vs. MRC Global | ProFrac Holding vs. Liberty Oilfield Services |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |