Correlation Between Patterson UTI and Yunhong Green
Can any of the company-specific risk be diversified away by investing in both Patterson UTI and Yunhong Green 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 Patterson UTI and Yunhong Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Patterson UTI Energy and Yunhong Green CTI, you can compare the effects of market volatilities on Patterson UTI and Yunhong Green 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 Yunhong Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Patterson UTI and Yunhong Green.
Diversification Opportunities for Patterson UTI and Yunhong Green
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Patterson and Yunhong is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Patterson UTI Energy and Yunhong Green CTI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunhong Green CTI 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 Yunhong Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunhong Green CTI has no effect on the direction of Patterson UTI i.e., Patterson UTI and Yunhong Green go up and down completely randomly.
Pair Corralation between Patterson UTI and Yunhong Green
Given the investment horizon of 90 days Patterson UTI Energy is expected to generate 0.49 times more return on investment than Yunhong Green. However, Patterson UTI Energy is 2.04 times less risky than Yunhong Green. It trades about -0.04 of its potential returns per unit of risk. Yunhong Green CTI is currently generating about -0.06 per unit of risk. If you would invest 1,068 in Patterson UTI Energy on September 12, 2024 and sell it today you would lose (284.00) from holding Patterson UTI Energy or give up 26.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Patterson UTI Energy vs. Yunhong Green CTI
Performance |
| Timeline |
| Patterson UTI Energy |
| Yunhong Green CTI |
Patterson UTI and Yunhong Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Patterson UTI and Yunhong Green
The main advantage of trading using opposite Patterson UTI and Yunhong Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Patterson UTI position performs unexpectedly, Yunhong Green 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 Yunhong Green will offset losses from the drop in Yunhong Green's long position.| Patterson UTI vs. Nabors Industries | Patterson UTI vs. Borr Drilling | Patterson UTI vs. Transocean | Patterson UTI vs. Helmerich and Payne |
| Yunhong Green vs. The Wendys Co | Yunhong Green vs. Enersys | Yunhong Green vs. Patterson UTI Energy | Yunhong Green vs. Transocean |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |