Correlation Between CES Energy and RPC
Can any of the company-specific risk be diversified away by investing in both CES Energy and RPC 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 CES Energy and RPC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CES Energy Solutions and RPC Inc, you can compare the effects of market volatilities on CES Energy and RPC 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 CES Energy with a short position of RPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CES Energy and RPC.
Diversification Opportunities for CES Energy and RPC
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CES and RPC is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding CES Energy Solutions and RPC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RPC Inc and CES Energy 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 CES Energy Solutions are associated (or correlated) with RPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RPC Inc has no effect on the direction of CES Energy i.e., CES Energy and RPC go up and down completely randomly.
Pair Corralation between CES Energy and RPC
Assuming the 90 days trading horizon CES Energy Solutions is expected to generate 0.89 times more return on investment than RPC. However, CES Energy Solutions is 1.12 times less risky than RPC. It trades about 0.12 of its potential returns per unit of risk. RPC Inc is currently generating about 0.0 per unit of risk. If you would invest 338.00 in CES Energy Solutions on October 1, 2025 and sell it today you would earn a total of 894.00 from holding CES Energy Solutions or generate 264.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CES Energy Solutions vs. RPC Inc
Performance |
| Timeline |
| CES Energy Solutions |
| RPC Inc |
CES Energy and RPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CES Energy and RPC
The main advantage of trading using opposite CES Energy and RPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CES Energy position performs unexpectedly, RPC 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 RPC will offset losses from the drop in RPC's long position.| CES Energy vs. Enerflex | CES Energy vs. Parex Resources | CES Energy vs. Headwater Exploration | CES Energy vs. Freehold Royalties |
| RPC vs. National Energy Services | RPC vs. Bristow Group | RPC vs. NPK International | RPC 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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