Correlation Between MRC Global and Superior Drilling
Can any of the company-specific risk be diversified away by investing in both MRC Global and Superior Drilling 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 Superior Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MRC Global and Superior Drilling Products, you can compare the effects of market volatilities on MRC Global and Superior Drilling 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 Superior Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRC Global and Superior Drilling.
Diversification Opportunities for MRC Global and Superior Drilling
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MRC and Superior is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding MRC Global and Superior Drilling Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Drilling 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 Superior Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Drilling has no effect on the direction of MRC Global i.e., MRC Global and Superior Drilling go up and down completely randomly.
Pair Corralation between MRC Global and Superior Drilling
If you would invest 1,261 in MRC Global on October 20, 2024 and sell it today you would earn a total of 182.00 from holding MRC Global or generate 14.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
MRC Global vs. Superior Drilling Products
Performance |
| Timeline |
| MRC Global |
| Superior Drilling |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MRC Global and Superior Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRC Global and Superior Drilling
The main advantage of trading using opposite MRC Global and Superior Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRC Global position performs unexpectedly, Superior Drilling 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 Superior Drilling will offset losses from the drop in Superior Drilling'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 |
| Superior Drilling vs. Geospace Technologies | Superior Drilling vs. Enerflex | Superior Drilling vs. MRC Global | Superior Drilling vs. Now 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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