Correlation Between ChampionX and Key Energy
Can any of the company-specific risk be diversified away by investing in both ChampionX and Key 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 ChampionX and Key Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChampionX and Key Energy Services, you can compare the effects of market volatilities on ChampionX and Key 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 ChampionX with a short position of Key Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChampionX and Key Energy.
Diversification Opportunities for ChampionX and Key Energy
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ChampionX and Key is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding ChampionX and Key Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Key Energy Services 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 Key Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Key Energy Services has no effect on the direction of ChampionX i.e., ChampionX and Key Energy go up and down completely randomly.
Pair Corralation between ChampionX and Key Energy
If you would invest 2,824 in ChampionX on August 31, 2024 and sell it today you would earn a total of 246.00 from holding ChampionX or generate 8.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
ChampionX vs. Key Energy Services
Performance |
| Timeline |
| ChampionX |
| Key Energy Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ChampionX and Key Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChampionX and Key Energy
The main advantage of trading using opposite ChampionX and Key Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChampionX position performs unexpectedly, Key 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 Key Energy will offset losses from the drop in Key Energy's long position.| ChampionX vs. Expro Group Holdings | ChampionX vs. Ranger Energy Services | ChampionX vs. Cactus Inc | ChampionX vs. MRC Global |
| Key Energy vs. Archrock | Key Energy vs. Newpark Resources | Key Energy vs. Bristow Group | Key Energy vs. TechnipFMC PLC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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