Correlation Between NCS Multistage and SEACOR Marine
Can any of the company-specific risk be diversified away by investing in both NCS Multistage and SEACOR Marine 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 NCS Multistage and SEACOR Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NCS Multistage Holdings and SEACOR Marine Holdings, you can compare the effects of market volatilities on NCS Multistage and SEACOR Marine 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 NCS Multistage with a short position of SEACOR Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of NCS Multistage and SEACOR Marine.
Diversification Opportunities for NCS Multistage and SEACOR Marine
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NCS and SEACOR is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding NCS Multistage Holdings and SEACOR Marine Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEACOR Marine Holdings and NCS Multistage 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 NCS Multistage Holdings are associated (or correlated) with SEACOR Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEACOR Marine Holdings has no effect on the direction of NCS Multistage i.e., NCS Multistage and SEACOR Marine go up and down completely randomly.
Pair Corralation between NCS Multistage and SEACOR Marine
Given the investment horizon of 90 days NCS Multistage Holdings is expected to generate 0.99 times more return on investment than SEACOR Marine. However, NCS Multistage Holdings is 1.01 times less risky than SEACOR Marine. It trades about 0.02 of its potential returns per unit of risk. SEACOR Marine Holdings is currently generating about 0.01 per unit of risk. If you would invest 2,299 in NCS Multistage Holdings on August 24, 2024 and sell it today you would earn a total of 2.00 from holding NCS Multistage Holdings or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.07% |
| Values | Daily Returns |
NCS Multistage Holdings vs. SEACOR Marine Holdings
Performance |
| Timeline |
| NCS Multistage Holdings |
| SEACOR Marine Holdings |
NCS Multistage and SEACOR Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NCS Multistage and SEACOR Marine
The main advantage of trading using opposite NCS Multistage and SEACOR Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NCS Multistage position performs unexpectedly, SEACOR Marine 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 SEACOR Marine will offset losses from the drop in SEACOR Marine's long position.| NCS Multistage vs. Enerflex | NCS Multistage vs. Forum Energy Technologies | NCS Multistage vs. Archrock | NCS Multistage vs. Geospace Technologies |
| SEACOR Marine vs. Ranger Energy Services | SEACOR Marine vs. Emerald Expositions Events | SEACOR Marine vs. NCS Multistage Holdings | SEACOR Marine vs. Thermon Group Holdings |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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