Correlation Between ChampionX and PHILIP
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By analyzing existing cross correlation between ChampionX and PHILIP MORRIS INTL, you can compare the effects of market volatilities on ChampionX and PHILIP 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 PHILIP. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChampionX and PHILIP.
Diversification Opportunities for ChampionX and PHILIP
Good diversification
The 3 months correlation between ChampionX and PHILIP is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding ChampionX and PHILIP MORRIS INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHILIP MORRIS INTL 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 PHILIP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHILIP MORRIS INTL has no effect on the direction of ChampionX i.e., ChampionX and PHILIP go up and down completely randomly.
Pair Corralation between ChampionX and PHILIP
Considering the 90-day investment horizon ChampionX is expected to generate 2.4 times more return on investment than PHILIP. However, ChampionX is 2.4 times more volatile than PHILIP MORRIS INTL. It trades about 0.22 of its potential returns per unit of risk. PHILIP MORRIS INTL is currently generating about -0.02 per unit of risk. If you would invest 2,795 in ChampionX on September 2, 2024 and sell it today you would earn a total of 300.00 from holding ChampionX or generate 10.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
ChampionX vs. PHILIP MORRIS INTL
Performance |
| Timeline |
| ChampionX |
| PHILIP MORRIS INTL |
ChampionX and PHILIP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChampionX and PHILIP
The main advantage of trading using opposite ChampionX and PHILIP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChampionX position performs unexpectedly, PHILIP 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 PHILIP will offset losses from the drop in PHILIP's long position.| ChampionX vs. Expro Group Holdings | ChampionX vs. Ranger Energy Services | ChampionX vs. Cactus Inc | ChampionX 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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