Correlation Between MRC Global and Expro Group
Can any of the company-specific risk be diversified away by investing in both MRC 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 MRC 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 MRC Global and Expro Group Holdings, you can compare the effects of market volatilities on MRC 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 MRC Global with a short position of Expro Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRC Global and Expro Group.
Diversification Opportunities for MRC Global and Expro Group
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MRC and Expro is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding MRC 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 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 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 MRC Global i.e., MRC Global and Expro Group go up and down completely randomly.
Pair Corralation between MRC Global and Expro Group
Considering the 90-day investment horizon MRC Global is expected to generate 0.91 times more return on investment than Expro Group. However, MRC Global is 1.1 times less risky than Expro Group. It trades about 0.18 of its potential returns per unit of risk. Expro Group Holdings is currently generating about -0.12 per unit of risk. If you would invest 1,230 in MRC Global on August 24, 2024 and sell it today you would earn a total of 169.00 from holding MRC Global or generate 13.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MRC Global vs. Expro Group Holdings
Performance |
| Timeline |
| MRC Global |
| Expro Group Holdings |
MRC Global and Expro Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRC Global and Expro Group
The main advantage of trading using opposite MRC Global and Expro Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRC 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.| MRC Global vs. NOV Inc | MRC Global vs. Ranger Energy Services | MRC Global vs. Oil States International | MRC Global vs. Geospace Technologies |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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