Correlation Between ChampionX and Global Technology
Can any of the company-specific risk be diversified away by investing in both ChampionX and Global Technology 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 ChampionX and Global Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChampionX and Global Technology Acquisition, you can compare the effects of market volatilities on ChampionX and Global Technology 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 ChampionX with a short position of Global Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChampionX and Global Technology.
Diversification Opportunities for ChampionX and Global Technology
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between ChampionX and Global is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding ChampionX and Global Technology Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Technology and ChampionX 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 ChampionX are associated (or correlated) with Global Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Technology has no effect on the direction of ChampionX i.e., ChampionX and Global Technology go up and down completely randomly.
Pair Corralation between ChampionX and Global Technology
Considering the 90-day investment horizon ChampionX is expected to generate 2.28 times more return on investment than Global Technology. However, ChampionX is 2.28 times more volatile than Global Technology Acquisition. It trades about 0.02 of its potential returns per unit of risk. Global Technology Acquisition is currently generating about 0.03 per unit of risk. If you would invest 2,731 in ChampionX on September 5, 2024 and sell it today you would earn a total of 343.00 from holding ChampionX or generate 12.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.94% |
| Values | Daily Returns |
ChampionX vs. Global Technology Acquisition
Performance |
| Timeline |
| ChampionX |
| Global Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
ChampionX and Global Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChampionX and Global Technology
The main advantage of trading using opposite ChampionX and Global Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChampionX position performs unexpectedly, Global Technology 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 Global Technology will offset losses from the drop in Global Technology's long position.| ChampionX vs. Expro Group Holdings | ChampionX vs. Ranger Energy Services | ChampionX vs. Cactus Inc | ChampionX vs. MRC Global |
| Global Technology vs. Aegon NV ADR | Global Technology vs. Hurco Companies | Global Technology vs. Ecoloclean Industrs | Global Technology vs. ChampionX |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |