Correlation Between Schlumberger and National Energy
Can any of the company-specific risk be diversified away by investing in both Schlumberger and National 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 Schlumberger and National Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schlumberger NV and National Energy Services, you can compare the effects of market volatilities on Schlumberger and National 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 Schlumberger with a short position of National Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schlumberger and National Energy.
Diversification Opportunities for Schlumberger and National Energy
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Schlumberger and National is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Schlumberger NV and National Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Energy Services and Schlumberger 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 Schlumberger NV are associated (or correlated) with National Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Energy Services has no effect on the direction of Schlumberger i.e., Schlumberger and National Energy go up and down completely randomly.
Pair Corralation between Schlumberger and National Energy
Considering the 90-day investment horizon Schlumberger is expected to generate 37.05 times less return on investment than National Energy. But when comparing it to its historical volatility, Schlumberger NV is 1.88 times less risky than National Energy. It trades about 0.0 of its potential returns per unit of risk. National Energy Services is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 598.00 in National Energy Services on September 2, 2024 and sell it today you would earn a total of 286.00 from holding National Energy Services or generate 47.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schlumberger NV vs. National Energy Services
Performance |
| Timeline |
| Schlumberger NV |
| National Energy Services |
Schlumberger and National Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schlumberger and National Energy
The main advantage of trading using opposite Schlumberger and National Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schlumberger position performs unexpectedly, National 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 National Energy will offset losses from the drop in National Energy's long position.| Schlumberger vs. Baker Hughes Co | Schlumberger vs. NOV Inc | Schlumberger vs. Weatherford International PLC | Schlumberger vs. Tenaris SA ADR |
| National Energy vs. Dawson Geophysical | National Energy vs. Mccoy Global | National Energy vs. Ranger Energy Services | National Energy vs. MRC Global |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |