Correlation Between Mccoy Global and Expro Group
Can any of the company-specific risk be diversified away by investing in both Mccoy Global 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 Mccoy Global and Expro Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mccoy Global and Expro Group Holdings, you can compare the effects of market volatilities on Mccoy Global 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 Mccoy Global with a short position of Expro Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mccoy Global and Expro Group.
Diversification Opportunities for Mccoy Global and Expro Group
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mccoy and Expro is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Mccoy Global 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 Mccoy Global 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 Mccoy Global 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 Mccoy Global i.e., Mccoy Global and Expro Group go up and down completely randomly.
Pair Corralation between Mccoy Global and Expro Group
Assuming the 90 days horizon Mccoy Global is expected to under-perform the Expro Group. In addition to that, Mccoy Global is 1.15 times more volatile than Expro Group Holdings. It trades about -0.25 of its total potential returns per unit of risk. Expro Group Holdings is currently generating about 0.08 per unit of volatility. If you would invest 1,346 in Expro Group Holdings on August 31, 2024 and sell it today you would earn a total of 69.00 from holding Expro Group Holdings or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mccoy Global vs. Expro Group Holdings
Performance |
| Timeline |
| Mccoy Global |
| Expro Group Holdings |
Mccoy Global and Expro Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mccoy Global and Expro Group
The main advantage of trading using opposite Mccoy Global and Expro Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mccoy Global 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.| Mccoy Global vs. Dawson Geophysical | Mccoy Global vs. National Energy Services | Mccoy Global vs. Ranger Energy Services | Mccoy Global vs. MRC Global |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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