Correlation Between Primoris Services and Calumet
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By analyzing existing cross correlation between Primoris Services and Calumet Specialty Products, you can compare the effects of market volatilities on Primoris Services and Calumet 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 Primoris Services with a short position of Calumet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Primoris Services and Calumet.
Diversification Opportunities for Primoris Services and Calumet
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Primoris and Calumet is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Primoris Services and Calumet Specialty Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calumet Specialty and Primoris Services 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 Primoris Services are associated (or correlated) with Calumet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calumet Specialty has no effect on the direction of Primoris Services i.e., Primoris Services and Calumet go up and down completely randomly.
Pair Corralation between Primoris Services and Calumet
Given the investment horizon of 90 days Primoris Services is expected to generate 3.81 times more return on investment than Calumet. However, Primoris Services is 3.81 times more volatile than Calumet Specialty Products. It trades about 0.17 of its potential returns per unit of risk. Calumet Specialty Products is currently generating about 0.03 per unit of risk. If you would invest 3,203 in Primoris Services on September 4, 2024 and sell it today you would earn a total of 5,123 from holding Primoris Services or generate 159.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 41.7% |
| Values | Daily Returns |
Primoris Services vs. Calumet Specialty Products
Performance |
| Timeline |
| Primoris Services |
| Calumet Specialty |
Primoris Services and Calumet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Primoris Services and Calumet
The main advantage of trading using opposite Primoris Services and Calumet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Primoris Services position performs unexpectedly, Calumet 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 Calumet will offset losses from the drop in Calumet's long position.| Primoris Services vs. EMCOR Group | Primoris Services vs. MYR Group | Primoris Services vs. Topbuild Corp | Primoris Services vs. Api Group Corp |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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