Correlation Between Patterson UTI and ACAFP
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By analyzing existing cross correlation between Patterson UTI Energy and ACAFP 4375 17 MAR 25, you can compare the effects of market volatilities on Patterson UTI and ACAFP 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 ACAFP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Patterson UTI and ACAFP.
Diversification Opportunities for Patterson UTI and ACAFP
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Patterson and ACAFP is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Patterson UTI Energy and ACAFP 4375 17 MAR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACAFP 4375 17 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 ACAFP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACAFP 4375 17 has no effect on the direction of Patterson UTI i.e., Patterson UTI and ACAFP go up and down completely randomly.
Pair Corralation between Patterson UTI and ACAFP
Given the investment horizon of 90 days Patterson UTI Energy is expected to under-perform the ACAFP. In addition to that, Patterson UTI is 19.27 times more volatile than ACAFP 4375 17 MAR 25. It trades about -0.06 of its total potential returns per unit of risk. ACAFP 4375 17 MAR 25 is currently generating about -0.3 per unit of volatility. If you would invest 9,991 in ACAFP 4375 17 MAR 25 on November 29, 2024 and sell it today you would lose (36.00) from holding ACAFP 4375 17 MAR 25 or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 38.1% |
| Values | Daily Returns |
Patterson UTI Energy vs. ACAFP 4375 17 MAR 25
Performance |
| Timeline |
| Patterson UTI Energy |
| ACAFP 4375 17 |
Patterson UTI and ACAFP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Patterson UTI and ACAFP
The main advantage of trading using opposite Patterson UTI and ACAFP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Patterson UTI position performs unexpectedly, ACAFP 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 ACAFP will offset losses from the drop in ACAFP's long position.| Patterson UTI vs. Nabors Industries | Patterson UTI vs. Precision Drilling | Patterson UTI vs. Noble plc | Patterson UTI vs. Helmerich and Payne |
| ACAFP vs. Smithfield Foods, Common | ACAFP vs. Kellanova | ACAFP vs. EastGroup Properties | ACAFP vs. Futuretech II Acquisition |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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