Correlation Between NR Old and Calfrac Well
Can any of the company-specific risk be diversified away by investing in both NR Old and Calfrac Well 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 NR Old and Calfrac Well into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NR Old and Calfrac Well Services, you can compare the effects of market volatilities on NR Old and Calfrac Well 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 NR Old with a short position of Calfrac Well. Check out your portfolio center. Please also check ongoing floating volatility patterns of NR Old and Calfrac Well.
Diversification Opportunities for NR Old and Calfrac Well
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NR Old and Calfrac is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding NR Old and Calfrac Well Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calfrac Well Services and NR Old 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 NR Old are associated (or correlated) with Calfrac Well. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calfrac Well Services has no effect on the direction of NR Old i.e., NR Old and Calfrac Well go up and down completely randomly.
Pair Corralation between NR Old and Calfrac Well
Allowing for the 90-day total investment horizon NR Old is expected to generate 1.12 times more return on investment than Calfrac Well. However, NR Old is 1.12 times more volatile than Calfrac Well Services. It trades about -0.04 of its potential returns per unit of risk. Calfrac Well Services is currently generating about -0.05 per unit of risk. If you would invest 791.00 in NR Old on November 2, 2024 and sell it today you would lose (67.00) from holding NR Old or give up 8.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.73% |
| Values | Daily Returns |
NR Old vs. Calfrac Well Services
Performance |
| Timeline |
| NR Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Calfrac Well Services |
NR Old and Calfrac Well Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NR Old and Calfrac Well
The main advantage of trading using opposite NR Old and Calfrac Well positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NR Old position performs unexpectedly, Calfrac Well 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 Calfrac Well will offset losses from the drop in Calfrac Well's long position.The idea behind NR Old and Calfrac Well Services pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Calfrac Well vs. Greenway Technologies | Calfrac Well vs. Akastor ASA | Calfrac Well vs. Auri Inc | Calfrac Well vs. Us Energy Initiative |
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.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |