Correlation Between TechnipFMC PLC and Expro Group
Can any of the company-specific risk be diversified away by investing in both TechnipFMC PLC 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 TechnipFMC PLC and Expro Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TechnipFMC PLC and Expro Group Holdings, you can compare the effects of market volatilities on TechnipFMC PLC 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 TechnipFMC PLC with a short position of Expro Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of TechnipFMC PLC and Expro Group.
Diversification Opportunities for TechnipFMC PLC and Expro Group
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TechnipFMC and Expro is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding TechnipFMC PLC 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 TechnipFMC PLC 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 TechnipFMC PLC 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 TechnipFMC PLC i.e., TechnipFMC PLC and Expro Group go up and down completely randomly.
Pair Corralation between TechnipFMC PLC and Expro Group
Considering the 90-day investment horizon TechnipFMC PLC is expected to generate 0.68 times more return on investment than Expro Group. However, TechnipFMC PLC is 1.46 times less risky than Expro Group. It trades about -0.06 of its potential returns per unit of risk. Expro Group Holdings is currently generating about -0.05 per unit of risk. If you would invest 3,152 in TechnipFMC PLC on November 3, 2024 and sell it today you would lose (147.00) from holding TechnipFMC PLC or give up 4.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.56% |
| Values | Daily Returns |
TechnipFMC PLC vs. Expro Group Holdings
Performance |
| Timeline |
| TechnipFMC PLC |
| Expro Group Holdings |
TechnipFMC PLC and Expro Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TechnipFMC PLC and Expro Group
The main advantage of trading using opposite TechnipFMC PLC and Expro Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TechnipFMC PLC 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.| TechnipFMC PLC vs. Oceaneering International | TechnipFMC PLC vs. NOV Inc | TechnipFMC PLC vs. Flowserve | TechnipFMC PLC vs. Core Laboratories NV |
| Expro Group vs. ChampionX | Expro Group vs. Ranger Energy Services | Expro Group vs. Cactus Inc | Expro Group 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |