Correlation Between CSI Compressco and Nine Energy
Can any of the company-specific risk be diversified away by investing in both CSI Compressco and Nine 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 CSI Compressco and Nine Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSI Compressco LP and Nine Energy Service, you can compare the effects of market volatilities on CSI Compressco and Nine 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 CSI Compressco with a short position of Nine Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSI Compressco and Nine Energy.
Diversification Opportunities for CSI Compressco and Nine Energy
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CSI and Nine is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding CSI Compressco LP and Nine Energy Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nine Energy Service and CSI Compressco 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 CSI Compressco LP are associated (or correlated) with Nine Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nine Energy Service has no effect on the direction of CSI Compressco i.e., CSI Compressco and Nine Energy go up and down completely randomly.
Pair Corralation between CSI Compressco and Nine Energy
If you would invest 103.00 in Nine Energy Service on August 24, 2024 and sell it today you would earn a total of 42.00 from holding Nine Energy Service or generate 40.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
CSI Compressco LP vs. Nine Energy Service
Performance |
| Timeline |
| CSI Compressco LP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nine Energy Service |
CSI Compressco and Nine Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSI Compressco and Nine Energy
The main advantage of trading using opposite CSI Compressco and Nine Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSI Compressco position performs unexpectedly, Nine 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 Nine Energy will offset losses from the drop in Nine Energy's long position.| CSI Compressco vs. Geospace Technologies | CSI Compressco vs. MRC Global | CSI Compressco vs. North American Construction | CSI Compressco vs. Natural Gas Services |
| Nine Energy vs. Liberty Oilfield Services | Nine Energy vs. ProFrac Holding Corp | Nine Energy vs. Helix Energy Solutions | Nine Energy vs. Newpark Resources |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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