Correlation Between Nabors Industries and PostRock Energy
Can any of the company-specific risk be diversified away by investing in both Nabors Industries and PostRock Energy 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 Nabors Industries and PostRock Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nabors Industries and PostRock Energy Corp, you can compare the effects of market volatilities on Nabors Industries and PostRock Energy 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 Nabors Industries with a short position of PostRock Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nabors Industries and PostRock Energy.
Diversification Opportunities for Nabors Industries and PostRock Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nabors and PostRock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nabors Industries and PostRock Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PostRock Energy Corp and Nabors Industries 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 Nabors Industries are associated (or correlated) with PostRock Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PostRock Energy Corp has no effect on the direction of Nabors Industries i.e., Nabors Industries and PostRock Energy go up and down completely randomly.
Pair Corralation between Nabors Industries and PostRock Energy
If you would invest 1.00 in PostRock Energy Corp on September 24, 2024 and sell it today you would earn a total of 0.00 from holding PostRock Energy Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.02% |
| Values | Daily Returns |
Nabors Industries vs. PostRock Energy Corp
Performance |
| Timeline |
| Nabors Industries |
| PostRock Energy Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nabors Industries and PostRock Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nabors Industries and PostRock Energy
The main advantage of trading using opposite Nabors Industries and PostRock Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nabors Industries position performs unexpectedly, PostRock Energy 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 PostRock Energy will offset losses from the drop in PostRock Energy's long position.| Nabors Industries vs. Helmerich and Payne | Nabors Industries vs. Precision Drilling | Nabors Industries vs. Seadrill Limited | Nabors Industries vs. Borr Drilling |
| PostRock Energy vs. Ecolab Inc | PostRock Energy vs. Nabors Industries | PostRock Energy vs. NL Industries | PostRock Energy vs. Avient Corp |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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