Correlation Between KLX Energy and US Silica
Can any of the company-specific risk be diversified away by investing in both KLX Energy and US Silica 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 KLX Energy and US Silica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KLX Energy Services and US Silica Holdings, you can compare the effects of market volatilities on KLX Energy and US Silica 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 KLX Energy with a short position of US Silica. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLX Energy and US Silica.
Diversification Opportunities for KLX Energy and US Silica
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KLX and SLCA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KLX Energy Services and US Silica Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Silica Holdings and KLX Energy 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 KLX Energy Services are associated (or correlated) with US Silica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Silica Holdings has no effect on the direction of KLX Energy i.e., KLX Energy and US Silica go up and down completely randomly.
Pair Corralation between KLX Energy and US Silica
If you would invest (100.00) in US Silica Holdings on January 10, 2025 and sell it today you would earn a total of 100.00 from holding US Silica Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
KLX Energy Services vs. US Silica Holdings
Performance |
| Timeline |
| KLX Energy Services |
| US Silica Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
KLX Energy and US Silica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLX Energy and US Silica
The main advantage of trading using opposite KLX Energy and US Silica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLX Energy position performs unexpectedly, US Silica 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 US Silica will offset losses from the drop in US Silica's long position.| KLX Energy vs. RPC Inc | KLX Energy vs. ProPetro Holding Corp | KLX Energy vs. Ranger Energy Services | KLX Energy vs. Flotek Industries |
| US Silica vs. North American Construction | US Silica vs. ProPetro Holding Corp | US Silica vs. Ranger Energy Services | US Silica 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 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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