Correlation Between ProFrac Holding and Worley Parsons
Can any of the company-specific risk be diversified away by investing in both ProFrac Holding and Worley Parsons 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 Worley Parsons 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 Worley Parsons, you can compare the effects of market volatilities on ProFrac Holding and Worley Parsons 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 Worley Parsons. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProFrac Holding and Worley Parsons.
Diversification Opportunities for ProFrac Holding and Worley Parsons
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between ProFrac and Worley is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding ProFrac Holding Corp and Worley Parsons in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worley Parsons 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 Worley Parsons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worley Parsons has no effect on the direction of ProFrac Holding i.e., ProFrac Holding and Worley Parsons go up and down completely randomly.
Pair Corralation between ProFrac Holding and Worley Parsons
Given the investment horizon of 90 days ProFrac Holding Corp is expected to generate 1.21 times more return on investment than Worley Parsons. However, ProFrac Holding is 1.21 times more volatile than Worley Parsons. It trades about 0.4 of its potential returns per unit of risk. Worley Parsons is currently generating about -0.01 per unit of risk. If you would invest 613.00 in ProFrac Holding Corp on August 31, 2024 and sell it today you would earn a total of 300.00 from holding ProFrac Holding Corp or generate 48.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProFrac Holding Corp vs. Worley Parsons
Performance |
| Timeline |
| ProFrac Holding Corp |
| Worley Parsons |
ProFrac Holding and Worley Parsons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProFrac Holding and Worley Parsons
The main advantage of trading using opposite ProFrac Holding and Worley Parsons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProFrac Holding position performs unexpectedly, Worley Parsons 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 Worley Parsons will offset losses from the drop in Worley Parsons' long position.| ProFrac Holding vs. Newpark Resources | ProFrac Holding vs. Natural Gas Services | ProFrac Holding vs. Geospace Technologies | ProFrac Holding vs. MRC Global |
| Worley Parsons vs. Petrofac Ltd ADR | Worley Parsons vs. Saipem SpA | Worley Parsons vs. SMG Industries | Worley Parsons vs. Bri Chem Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |