Correlation Between Civeo Corp and Performant Financial
Can any of the company-specific risk be diversified away by investing in both Civeo Corp and Performant Financial 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 Civeo Corp and Performant Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Civeo Corp and Performant Financial, you can compare the effects of market volatilities on Civeo Corp and Performant Financial 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 Civeo Corp with a short position of Performant Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Civeo Corp and Performant Financial.
Diversification Opportunities for Civeo Corp and Performant Financial
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Civeo and Performant is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Civeo Corp and Performant Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performant Financial and Civeo Corp 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 Civeo Corp are associated (or correlated) with Performant Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performant Financial has no effect on the direction of Civeo Corp i.e., Civeo Corp and Performant Financial go up and down completely randomly.
Pair Corralation between Civeo Corp and Performant Financial
Given the investment horizon of 90 days Civeo Corp is expected to under-perform the Performant Financial. But the stock apears to be less risky and, when comparing its historical volatility, Civeo Corp is 1.52 times less risky than Performant Financial. The stock trades about -0.01 of its potential returns per unit of risk. The Performant Financial is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 327.00 in Performant Financial on October 21, 2024 and sell it today you would lose (8.00) from holding Performant Financial or give up 2.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.17% |
| Values | Daily Returns |
Civeo Corp vs. Performant Financial
Performance |
| Timeline |
| Civeo Corp |
| Performant Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Civeo Corp and Performant Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Civeo Corp and Performant Financial
The main advantage of trading using opposite Civeo Corp and Performant Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Civeo Corp position performs unexpectedly, Performant Financial 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 Performant Financial will offset losses from the drop in Performant Financial's long position.| Civeo Corp vs. Network 1 Technologies | Civeo Corp vs. BrightView Holdings | Civeo Corp vs. Maximus | Civeo Corp vs. CBIZ Inc |
| Performant Financial vs. Network 1 Technologies | Performant Financial vs. Rentokil Initial PLC | Performant Financial vs. Wilhelmina | Performant Financial vs. Mader Group Limited |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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