Correlation Between ChampionX and Solaris Oilfield
Can any of the company-specific risk be diversified away by investing in both ChampionX and Solaris Oilfield 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 Solaris Oilfield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChampionX and Solaris Oilfield Infrastructure, you can compare the effects of market volatilities on ChampionX and Solaris Oilfield 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 Solaris Oilfield. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChampionX and Solaris Oilfield.
Diversification Opportunities for ChampionX and Solaris Oilfield
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ChampionX and Solaris is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding ChampionX and Solaris Oilfield Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solaris Oilfield Inf 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 Solaris Oilfield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solaris Oilfield Inf has no effect on the direction of ChampionX i.e., ChampionX and Solaris Oilfield go up and down completely randomly.
Pair Corralation between ChampionX and Solaris Oilfield
If you would invest 2,965 in ChampionX on August 24, 2024 and sell it today you would earn a total of 163.00 from holding ChampionX or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
ChampionX vs. Solaris Oilfield Infrastructur
Performance |
| Timeline |
| ChampionX |
| Solaris Oilfield Inf |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ChampionX and Solaris Oilfield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChampionX and Solaris Oilfield
The main advantage of trading using opposite ChampionX and Solaris Oilfield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChampionX position performs unexpectedly, Solaris Oilfield 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 Solaris Oilfield will offset losses from the drop in Solaris Oilfield's long position.| ChampionX vs. Expro Group Holdings | ChampionX vs. Ranger Energy Services | ChampionX vs. Cactus Inc | ChampionX vs. MRC Global |
| Solaris Oilfield vs. Archrock | Solaris Oilfield vs. Newpark Resources | Solaris Oilfield vs. Bristow Group | Solaris Oilfield vs. MRC Global |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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