Correlation Between ProPetro Holding and Bristow
Can any of the company-specific risk be diversified away by investing in both ProPetro Holding and Bristow 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 ProPetro Holding and Bristow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProPetro Holding Corp and Bristow Group, you can compare the effects of market volatilities on ProPetro Holding and Bristow 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 ProPetro Holding with a short position of Bristow. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProPetro Holding and Bristow.
Diversification Opportunities for ProPetro Holding and Bristow
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ProPetro and Bristow is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding ProPetro Holding Corp and Bristow Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bristow Group and ProPetro Holding 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 ProPetro Holding Corp are associated (or correlated) with Bristow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bristow Group has no effect on the direction of ProPetro Holding i.e., ProPetro Holding and Bristow go up and down completely randomly.
Pair Corralation between ProPetro Holding and Bristow
Given the investment horizon of 90 days ProPetro Holding is expected to generate 14.76 times less return on investment than Bristow. In addition to that, ProPetro Holding is 1.22 times more volatile than Bristow Group. It trades about 0.0 of its total potential returns per unit of risk. Bristow Group is currently generating about 0.08 per unit of volatility. If you would invest 2,628 in Bristow Group on August 27, 2024 and sell it today you would earn a total of 1,201 from holding Bristow Group or generate 45.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProPetro Holding Corp vs. Bristow Group
Performance |
| Timeline |
| ProPetro Holding Corp |
| Bristow Group |
ProPetro Holding and Bristow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProPetro Holding and Bristow
The main advantage of trading using opposite ProPetro Holding and Bristow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProPetro Holding position performs unexpectedly, Bristow 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 Bristow will offset losses from the drop in Bristow's long position.| ProPetro Holding vs. Ranger Energy Services | ProPetro Holding vs. Newpark Resources | ProPetro Holding vs. RPC Inc | ProPetro Holding vs. Archrock |
| Bristow vs. ProPetro Holding Corp | Bristow vs. RPC Inc | Bristow vs. MRC Global | Bristow vs. Expro Group Holdings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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