Correlation Between Secure Energy and Calfrac Well
Can any of the company-specific risk be diversified away by investing in both Secure Energy and Calfrac Well 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 Secure Energy and Calfrac Well into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Secure Energy Services and Calfrac Well Services, you can compare the effects of market volatilities on Secure Energy and Calfrac Well 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 Secure Energy with a short position of Calfrac Well. Check out your portfolio center. Please also check ongoing floating volatility patterns of Secure Energy and Calfrac Well.
Diversification Opportunities for Secure Energy and Calfrac Well
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Secure and Calfrac is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Secure Energy Services and Calfrac Well Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calfrac Well Services and Secure Energy 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 Secure Energy Services are associated (or correlated) with Calfrac Well. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calfrac Well Services has no effect on the direction of Secure Energy i.e., Secure Energy and Calfrac Well go up and down completely randomly.
Pair Corralation between Secure Energy and Calfrac Well
Assuming the 90 days trading horizon Secure Energy Services is expected to under-perform the Calfrac Well. In addition to that, Secure Energy is 1.06 times more volatile than Calfrac Well Services. It trades about -0.26 of its total potential returns per unit of risk. Calfrac Well Services is currently generating about -0.09 per unit of volatility. If you would invest 398.00 in Calfrac Well Services on November 18, 2024 and sell it today you would lose (11.00) from holding Calfrac Well Services or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Secure Energy Services vs. Calfrac Well Services
Performance |
| Timeline |
| Secure Energy Services |
| Calfrac Well Services |
Secure Energy and Calfrac Well Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Secure Energy and Calfrac Well
The main advantage of trading using opposite Secure Energy and Calfrac Well positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Secure Energy position performs unexpectedly, Calfrac Well 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 Calfrac Well will offset losses from the drop in Calfrac Well's long position.| Secure Energy vs. CES Energy Solutions | Secure Energy vs. Ensign Energy Services | Secure Energy vs. Enerflex | Secure Energy vs. Pason Systems |
| Calfrac Well vs. Trican Well Service | Calfrac Well vs. Ensign Energy Services | Calfrac Well vs. Precision Drilling | Calfrac Well vs. Secure Energy Services |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |