Correlation Between Calfrac Well and Jutal Offshore
Can any of the company-specific risk be diversified away by investing in both Calfrac Well and Jutal Offshore 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 Calfrac Well and Jutal Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calfrac Well Services and Jutal Offshore Oil, you can compare the effects of market volatilities on Calfrac Well and Jutal Offshore 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 Calfrac Well with a short position of Jutal Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calfrac Well and Jutal Offshore.
Diversification Opportunities for Calfrac Well and Jutal Offshore
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calfrac and Jutal is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Calfrac Well Services and Jutal Offshore Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jutal Offshore Oil and Calfrac Well 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 Calfrac Well Services are associated (or correlated) with Jutal Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jutal Offshore Oil has no effect on the direction of Calfrac Well i.e., Calfrac Well and Jutal Offshore go up and down completely randomly.
Pair Corralation between Calfrac Well and Jutal Offshore
Assuming the 90 days horizon Calfrac Well Services is expected to under-perform the Jutal Offshore. But the pink sheet apears to be less risky and, when comparing its historical volatility, Calfrac Well Services is 1.91 times less risky than Jutal Offshore. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Jutal Offshore Oil is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,558 in Jutal Offshore Oil on September 25, 2024 and sell it today you would earn a total of 347.00 from holding Jutal Offshore Oil or generate 22.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Calfrac Well Services vs. Jutal Offshore Oil
Performance |
| Timeline |
| Calfrac Well Services |
| Jutal Offshore Oil |
Calfrac Well and Jutal Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calfrac Well and Jutal Offshore
The main advantage of trading using opposite Calfrac Well and Jutal Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calfrac Well position performs unexpectedly, Jutal Offshore 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 Jutal Offshore will offset losses from the drop in Jutal Offshore's long position.| Calfrac Well vs. Stamper Oil Gas | Calfrac Well vs. Valeura Energy | Calfrac Well vs. Invictus Energy Limited | Calfrac Well vs. ConnectOne Bancorp |
| Jutal Offshore vs. SMG Industries | Jutal Offshore vs. NXT Energy Solutions | Jutal Offshore vs. Dawson Geophysical | Jutal Offshore vs. Calfrac Well 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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