Correlation Between ChampionX and WELLS
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By analyzing existing cross correlation between ChampionX and WELLS FARGO NEW, you can compare the effects of market volatilities on ChampionX and WELLS 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 WELLS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChampionX and WELLS.
Diversification Opportunities for ChampionX and WELLS
Very weak diversification
The 3 months correlation between ChampionX and WELLS is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding ChampionX and WELLS FARGO NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WELLS FARGO NEW 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 WELLS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WELLS FARGO NEW has no effect on the direction of ChampionX i.e., ChampionX and WELLS go up and down completely randomly.
Pair Corralation between ChampionX and WELLS
Considering the 90-day investment horizon ChampionX is expected to generate 2.41 times more return on investment than WELLS. However, ChampionX is 2.41 times more volatile than WELLS FARGO NEW. It trades about 0.15 of its potential returns per unit of risk. WELLS FARGO NEW is currently generating about 0.07 per unit of risk. If you would invest 2,661 in ChampionX on November 30, 2024 and sell it today you would earn a total of 319.00 from holding ChampionX or generate 11.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
ChampionX vs. WELLS FARGO NEW
Performance |
| Timeline |
| ChampionX |
| WELLS FARGO NEW |
ChampionX and WELLS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChampionX and WELLS
The main advantage of trading using opposite ChampionX and WELLS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChampionX position performs unexpectedly, WELLS 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 WELLS will offset losses from the drop in WELLS'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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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