Correlation Between Patterson UTI and 456837AV5
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By analyzing existing cross correlation between Patterson UTI Energy and ING GROEP NV, you can compare the effects of market volatilities on Patterson UTI and 456837AV5 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 456837AV5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Patterson UTI and 456837AV5.
Diversification Opportunities for Patterson UTI and 456837AV5
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Patterson and 456837AV5 is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Patterson UTI Energy and ING GROEP NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ING GROEP NV 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 456837AV5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ING GROEP NV has no effect on the direction of Patterson UTI i.e., Patterson UTI and 456837AV5 go up and down completely randomly.
Pair Corralation between Patterson UTI and 456837AV5
Given the investment horizon of 90 days Patterson UTI Energy is expected to generate 1.64 times more return on investment than 456837AV5. However, Patterson UTI is 1.64 times more volatile than ING GROEP NV. It trades about 0.14 of its potential returns per unit of risk. ING GROEP NV is currently generating about -0.23 per unit of risk. If you would invest 754.00 in Patterson UTI Energy on September 5, 2024 and sell it today you would earn a total of 66.00 from holding Patterson UTI Energy or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.82% |
| Values | Daily Returns |
Patterson UTI Energy vs. ING GROEP NV
Performance |
| Timeline |
| Patterson UTI Energy |
| ING GROEP NV |
Patterson UTI and 456837AV5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Patterson UTI and 456837AV5
The main advantage of trading using opposite Patterson UTI and 456837AV5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Patterson UTI position performs unexpectedly, 456837AV5 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 456837AV5 will offset losses from the drop in 456837AV5's long position.| Patterson UTI vs. Nabors Industries | Patterson UTI vs. Precision Drilling | Patterson UTI vs. Noble plc | Patterson UTI vs. Helmerich and Payne |
| 456837AV5 vs. Axalta Coating Systems | 456837AV5 vs. Ecolab Inc | 456837AV5 vs. Smith Douglas Homes | 456837AV5 vs. Mid Atlantic Home Health |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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