Correlation Between NYSE Composite and PATTERSON
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By analyzing existing cross correlation between NYSE Composite and PATTERSON UTI ENERGY INC, you can compare the effects of market volatilities on NYSE Composite and PATTERSON 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 NYSE Composite with a short position of PATTERSON. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and PATTERSON.
Diversification Opportunities for NYSE Composite and PATTERSON
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NYSE and PATTERSON is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and PATTERSON UTI ENERGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PATTERSON UTI ENERGY and NYSE Composite 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 NYSE Composite are associated (or correlated) with PATTERSON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PATTERSON UTI ENERGY has no effect on the direction of NYSE Composite i.e., NYSE Composite and PATTERSON go up and down completely randomly.
Pair Corralation between NYSE Composite and PATTERSON
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.31 times more return on investment than PATTERSON. However, NYSE Composite is 3.24 times less risky than PATTERSON. It trades about 0.41 of its potential returns per unit of risk. PATTERSON UTI ENERGY INC is currently generating about -0.2 per unit of risk. If you would invest 1,925,354 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 101,850 from holding NYSE Composite or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
NYSE Composite vs. PATTERSON UTI ENERGY INC
Performance |
| Timeline |
NYSE Composite and PATTERSON Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
PATTERSON UTI ENERGY INC
Pair trading matchups for PATTERSON
Pair Trading with NYSE Composite and PATTERSON
The main advantage of trading using opposite NYSE Composite and PATTERSON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, PATTERSON 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 PATTERSON will offset losses from the drop in PATTERSON's long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| PATTERSON vs. AEP TEX INC | PATTERSON vs. US BANK NATIONAL | PATTERSON vs. Bank of America | PATTERSON vs. GE Aerospace |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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