Correlation Between Shawcor and Forum Energy
Can any of the company-specific risk be diversified away by investing in both Shawcor and Forum Energy 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 Shawcor and Forum Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shawcor and Forum Energy Technologies, you can compare the effects of market volatilities on Shawcor and Forum Energy 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 Shawcor with a short position of Forum Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shawcor and Forum Energy.
Diversification Opportunities for Shawcor and Forum Energy
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shawcor and Forum is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Shawcor and Forum Energy Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forum Energy Technologies and Shawcor 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 Shawcor are associated (or correlated) with Forum Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forum Energy Technologies has no effect on the direction of Shawcor i.e., Shawcor and Forum Energy go up and down completely randomly.
Pair Corralation between Shawcor and Forum Energy
If you would invest 1,513 in Shawcor on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Shawcor or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Shawcor vs. Forum Energy Technologies
Performance |
| Timeline |
| Shawcor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Forum Energy Technologies |
Shawcor and Forum Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shawcor and Forum Energy
The main advantage of trading using opposite Shawcor and Forum Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shawcor position performs unexpectedly, Forum Energy 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 Forum Energy will offset losses from the drop in Forum Energy's long position.| Shawcor vs. STEP Energy Services | Shawcor vs. Total Energy Services | Shawcor vs. Trican Well Service | Shawcor vs. High Arctic Energy |
| Forum Energy vs. Schlumberger NV | Forum Energy vs. Weatherford International PLC | Forum Energy vs. Tenaris SA ADR | Forum Energy vs. Halliburton |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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