Correlation Between Newpark Resources and Premier Exhibitions
Can any of the company-specific risk be diversified away by investing in both Newpark Resources and Premier Exhibitions 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 Newpark Resources and Premier Exhibitions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newpark Resources and Premier Exhibitions, you can compare the effects of market volatilities on Newpark Resources and Premier Exhibitions 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 Newpark Resources with a short position of Premier Exhibitions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newpark Resources and Premier Exhibitions.
Diversification Opportunities for Newpark Resources and Premier Exhibitions
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Newpark and Premier is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Newpark Resources and Premier Exhibitions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Exhibitions and Newpark Resources 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 Newpark Resources are associated (or correlated) with Premier Exhibitions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Exhibitions has no effect on the direction of Newpark Resources i.e., Newpark Resources and Premier Exhibitions go up and down completely randomly.
Pair Corralation between Newpark Resources and Premier Exhibitions
If you would invest 719.00 in Newpark Resources on September 14, 2024 and sell it today you would earn a total of 59.50 from holding Newpark Resources or generate 8.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Newpark Resources vs. Premier Exhibitions
Performance |
| Timeline |
| Newpark Resources |
| Premier Exhibitions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Newpark Resources and Premier Exhibitions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newpark Resources and Premier Exhibitions
The main advantage of trading using opposite Newpark Resources and Premier Exhibitions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newpark Resources position performs unexpectedly, Premier Exhibitions 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 Premier Exhibitions will offset losses from the drop in Premier Exhibitions' long position.| Newpark Resources vs. Tenaris SA ADR | Newpark Resources vs. Dawson Geophysical | Newpark Resources vs. Bristow Group | Newpark Resources vs. Enerflex |
| Premier Exhibitions vs. Pool Corporation | Premier Exhibitions vs. National Vision Holdings | Premier Exhibitions vs. Lululemon Athletica | Premier Exhibitions vs. Cedar Realty Trust |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| CEOs Directory Screen CEOs from public companies around the world |