Correlation Between Now and Expro Group
Can any of the company-specific risk be diversified away by investing in both Now and Expro Group 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 Now and Expro Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Now Inc and Expro Group Holdings, you can compare the effects of market volatilities on Now and Expro Group 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 Now with a short position of Expro Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Now and Expro Group.
Diversification Opportunities for Now and Expro Group
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Now and Expro is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Now Inc and Expro Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expro Group Holdings and Now 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 Now Inc are associated (or correlated) with Expro Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expro Group Holdings has no effect on the direction of Now i.e., Now and Expro Group go up and down completely randomly.
Pair Corralation between Now and Expro Group
Given the investment horizon of 90 days Now Inc is expected to generate 0.87 times more return on investment than Expro Group. However, Now Inc is 1.15 times less risky than Expro Group. It trades about 0.03 of its potential returns per unit of risk. Expro Group Holdings is currently generating about 0.0 per unit of risk. If you would invest 1,187 in Now Inc on August 26, 2024 and sell it today you would earn a total of 308.00 from holding Now Inc or generate 25.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Now Inc vs. Expro Group Holdings
Performance |
| Timeline |
| Now Inc |
| Expro Group Holdings |
Now and Expro Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Now and Expro Group
The main advantage of trading using opposite Now and Expro Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Now position performs unexpectedly, Expro Group 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 Expro Group will offset losses from the drop in Expro Group's long position.| Now vs. Global Industrial Co | Now vs. BlueLinx Holdings | Now vs. WESCO International | Now vs. MSC Industrial Direct |
| Expro Group vs. Natural Gas Services | Expro Group vs. Archrock | Expro Group vs. Geospace Technologies | Expro Group vs. Newpark Resources |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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