Correlation Between Flotek Industries and Akastor ASA
Can any of the company-specific risk be diversified away by investing in both Flotek Industries and Akastor ASA 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 Flotek Industries and Akastor ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flotek Industries and Akastor ASA, you can compare the effects of market volatilities on Flotek Industries and Akastor ASA 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 Flotek Industries with a short position of Akastor ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flotek Industries and Akastor ASA.
Diversification Opportunities for Flotek Industries and Akastor ASA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flotek and Akastor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flotek Industries and Akastor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akastor ASA and Flotek Industries 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 Flotek Industries are associated (or correlated) with Akastor ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akastor ASA has no effect on the direction of Flotek Industries i.e., Flotek Industries and Akastor ASA go up and down completely randomly.
Pair Corralation between Flotek Industries and Akastor ASA
If you would invest 507.00 in Flotek Industries on September 2, 2024 and sell it today you would earn a total of 343.00 from holding Flotek Industries or generate 67.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flotek Industries vs. Akastor ASA
Performance |
| Timeline |
| Flotek Industries |
| Akastor ASA |
Flotek Industries and Akastor ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flotek Industries and Akastor ASA
The main advantage of trading using opposite Flotek Industries and Akastor ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flotek Industries position performs unexpectedly, Akastor ASA 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 Akastor ASA will offset losses from the drop in Akastor ASA's long position.| Flotek Industries vs. ProPetro Holding Corp | Flotek Industries vs. Liberty Oilfield Services | Flotek Industries vs. KLX Energy Services | Flotek Industries vs. MRC Global |
| Akastor ASA vs. Expro Group Holdings | Akastor ASA vs. ChampionX | Akastor ASA vs. Ranger Energy Services | Akastor ASA vs. Cactus Inc |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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