Correlation Between CSI Compressco and Oil States
Can any of the company-specific risk be diversified away by investing in both CSI Compressco and Oil States 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 Oil States 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 Oil States International, you can compare the effects of market volatilities on CSI Compressco and Oil States 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 Oil States. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSI Compressco and Oil States.
Diversification Opportunities for CSI Compressco and Oil States
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CSI and Oil is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding CSI Compressco LP and Oil States International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oil States International 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 Oil States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oil States International has no effect on the direction of CSI Compressco i.e., CSI Compressco and Oil States go up and down completely randomly.
Pair Corralation between CSI Compressco and Oil States
Given the investment horizon of 90 days CSI Compressco LP is expected to under-perform the Oil States. In addition to that, CSI Compressco is 1.03 times more volatile than Oil States International. It trades about -0.01 of its total potential returns per unit of risk. Oil States International is currently generating about 0.01 per unit of volatility. If you would invest 648.00 in Oil States International on August 24, 2024 and sell it today you would lose (76.00) from holding Oil States International or give up 11.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 32.06% |
| Values | Daily Returns |
CSI Compressco LP vs. Oil States International
Performance |
| Timeline |
| CSI Compressco LP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oil States International |
CSI Compressco and Oil States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSI Compressco and Oil States
The main advantage of trading using opposite CSI Compressco and Oil States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSI Compressco position performs unexpectedly, Oil States 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 Oil States will offset losses from the drop in Oil States' long position.| CSI Compressco vs. Geospace Technologies | CSI Compressco vs. MRC Global | CSI Compressco vs. North American Construction | CSI Compressco vs. Natural Gas Services |
| Oil States vs. Oceaneering International | Oil States vs. ChampionX | Oil States vs. TechnipFMC PLC | Oil States vs. Helix Energy Solutions |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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