Correlation Between MRC Global and Mccoy Global
Can any of the company-specific risk be diversified away by investing in both MRC Global and Mccoy Global 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 MRC Global and Mccoy Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MRC Global and Mccoy Global, you can compare the effects of market volatilities on MRC Global and Mccoy Global 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 MRC Global with a short position of Mccoy Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRC Global and Mccoy Global.
Diversification Opportunities for MRC Global and Mccoy Global
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MRC and Mccoy is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding MRC Global and Mccoy Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mccoy Global and MRC 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 MRC Global are associated (or correlated) with Mccoy Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mccoy Global has no effect on the direction of MRC Global i.e., MRC Global and Mccoy Global go up and down completely randomly.
Pair Corralation between MRC Global and Mccoy Global
Considering the 90-day investment horizon MRC Global is expected to generate 1.69 times less return on investment than Mccoy Global. But when comparing it to its historical volatility, MRC Global is 1.37 times less risky than Mccoy Global. It trades about 0.06 of its potential returns per unit of risk. Mccoy Global is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 116.00 in Mccoy Global on August 31, 2024 and sell it today you would earn a total of 92.00 from holding Mccoy Global or generate 79.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 78.93% |
| Values | Daily Returns |
MRC Global vs. Mccoy Global
Performance |
| Timeline |
| MRC Global |
| Mccoy Global |
MRC Global and Mccoy Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRC Global and Mccoy Global
The main advantage of trading using opposite MRC Global and Mccoy Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRC Global position performs unexpectedly, Mccoy Global 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 Mccoy Global will offset losses from the drop in Mccoy Global's long position.| MRC Global vs. NOV Inc | MRC Global vs. Ranger Energy Services | MRC Global vs. Oil States International | MRC Global vs. Geospace Technologies |
| Mccoy Global vs. Dawson Geophysical | Mccoy Global vs. National Energy Services | Mccoy Global vs. Ranger Energy Services | Mccoy Global 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 CEOs Directory module to screen CEOs from public companies around the world.
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