Correlation Between Oil States and CSI Compressco
Can any of the company-specific risk be diversified away by investing in both Oil States and CSI Compressco 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 Oil States and CSI Compressco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oil States International and CSI Compressco LP, you can compare the effects of market volatilities on Oil States and CSI Compressco 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 Oil States with a short position of CSI Compressco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oil States and CSI Compressco.
Diversification Opportunities for Oil States and CSI Compressco
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oil and CSI is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Oil States International and CSI Compressco LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSI Compressco LP and Oil States 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 Oil States International are associated (or correlated) with CSI Compressco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSI Compressco LP has no effect on the direction of Oil States i.e., Oil States and CSI Compressco go up and down completely randomly.
Pair Corralation between Oil States and CSI Compressco
If you would invest 435.00 in Oil States International on August 28, 2024 and sell it today you would earn a total of 116.00 from holding Oil States International or generate 26.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Oil States International vs. CSI Compressco LP
Performance |
| Timeline |
| Oil States International |
| CSI Compressco LP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oil States and CSI Compressco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oil States and CSI Compressco
The main advantage of trading using opposite Oil States and CSI Compressco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oil States position performs unexpectedly, CSI Compressco 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 CSI Compressco will offset losses from the drop in CSI Compressco's long position.| Oil States vs. Oceaneering International | Oil States vs. ChampionX | Oil States vs. TechnipFMC PLC | Oil States vs. Helix Energy Solutions |
| CSI Compressco vs. Geospace Technologies | CSI Compressco vs. MRC Global | CSI Compressco vs. North American Construction | CSI Compressco vs. Natural Gas Services |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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