Correlation Between Patterson UTI and BIOGEN
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By analyzing existing cross correlation between Patterson UTI Energy and BIOGEN INC, you can compare the effects of market volatilities on Patterson UTI and BIOGEN 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 Patterson UTI with a short position of BIOGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Patterson UTI and BIOGEN.
Diversification Opportunities for Patterson UTI and BIOGEN
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Patterson and BIOGEN is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Patterson UTI Energy and BIOGEN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIOGEN INC and Patterson UTI 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 Patterson UTI Energy are associated (or correlated) with BIOGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIOGEN INC has no effect on the direction of Patterson UTI i.e., Patterson UTI and BIOGEN go up and down completely randomly.
Pair Corralation between Patterson UTI and BIOGEN
Given the investment horizon of 90 days Patterson UTI Energy is expected to under-perform the BIOGEN. In addition to that, Patterson UTI is 2.94 times more volatile than BIOGEN INC. It trades about -0.02 of its total potential returns per unit of risk. BIOGEN INC is currently generating about 0.0 per unit of volatility. If you would invest 6,647 in BIOGEN INC on September 3, 2024 and sell it today you would lose (81.00) from holding BIOGEN INC or give up 1.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.38% |
| Values | Daily Returns |
Patterson UTI Energy vs. BIOGEN INC
Performance |
| Timeline |
| Patterson UTI Energy |
| BIOGEN INC |
Patterson UTI and BIOGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Patterson UTI and BIOGEN
The main advantage of trading using opposite Patterson UTI and BIOGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Patterson UTI position performs unexpectedly, BIOGEN 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 BIOGEN will offset losses from the drop in BIOGEN's long position.| Patterson UTI vs. Nabors Industries | Patterson UTI vs. Precision Drilling | Patterson UTI vs. Noble plc | Patterson UTI vs. Helmerich and Payne |
| BIOGEN vs. Yuexiu Transport Infrastructure | BIOGEN vs. Patterson UTI Energy | BIOGEN vs. Hf Foods Group | BIOGEN vs. Beyond Meat |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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