Correlation Between ProPetro Holding and Expro Group
Can any of the company-specific risk be diversified away by investing in both ProPetro Holding and Expro Group 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 Expro Group 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 Expro Group Holdings, you can compare the effects of market volatilities on ProPetro Holding and Expro Group 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 Expro Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProPetro Holding and Expro Group.
Diversification Opportunities for ProPetro Holding and Expro Group
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ProPetro and Expro is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding ProPetro Holding Corp and Expro Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expro Group Holdings 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 Expro Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expro Group Holdings has no effect on the direction of ProPetro Holding i.e., ProPetro Holding and Expro Group go up and down completely randomly.
Pair Corralation between ProPetro Holding and Expro Group
Given the investment horizon of 90 days ProPetro Holding Corp is expected to generate 1.11 times more return on investment than Expro Group. However, ProPetro Holding is 1.11 times more volatile than Expro Group Holdings. It trades about -0.02 of its potential returns per unit of risk. Expro Group Holdings is currently generating about -0.12 per unit of risk. If you would invest 982.00 in ProPetro Holding Corp on August 26, 2024 and sell it today you would lose (132.00) from holding ProPetro Holding Corp or give up 13.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProPetro Holding Corp vs. Expro Group Holdings
Performance |
| Timeline |
| ProPetro Holding Corp |
| Expro Group Holdings |
ProPetro Holding and Expro Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProPetro Holding and Expro Group
The main advantage of trading using opposite ProPetro Holding and Expro Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProPetro Holding position performs unexpectedly, Expro Group 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 Expro Group will offset losses from the drop in Expro Group's long position.| ProPetro Holding vs. Ranger Energy Services | ProPetro Holding vs. Newpark Resources | ProPetro Holding vs. RPC Inc | ProPetro Holding vs. Archrock |
| Expro Group vs. Natural Gas Services | Expro Group vs. Archrock | Expro Group vs. Geospace Technologies | Expro Group vs. Newpark Resources |
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.
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