Correlation Between Schlumberger and Bristow
Can any of the company-specific risk be diversified away by investing in both Schlumberger 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 Schlumberger and Bristow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schlumberger NV and Bristow Group, you can compare the effects of market volatilities on Schlumberger 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 Schlumberger with a short position of Bristow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schlumberger and Bristow.
Diversification Opportunities for Schlumberger and Bristow
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Schlumberger and Bristow is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Schlumberger NV and Bristow Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bristow Group 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 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 Schlumberger i.e., Schlumberger and Bristow go up and down completely randomly.
Pair Corralation between Schlumberger and Bristow
Considering the 90-day investment horizon Schlumberger is expected to generate 1.42 times less return on investment than Bristow. But when comparing it to its historical volatility, Schlumberger NV is 1.23 times less risky than Bristow. It trades about 0.21 of its potential returns per unit of risk. Bristow Group is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 3,369 in Bristow Group on August 31, 2024 and sell it today you would earn a total of 425.00 from holding Bristow Group or generate 12.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schlumberger NV vs. Bristow Group
Performance |
| Timeline |
| Schlumberger NV |
| Bristow Group |
Schlumberger and Bristow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schlumberger and Bristow
The main advantage of trading using opposite Schlumberger and Bristow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schlumberger 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.| Schlumberger vs. Baker Hughes Co | Schlumberger vs. NOV Inc | Schlumberger vs. Weatherford International PLC | Schlumberger vs. Tenaris SA ADR |
| Bristow vs. Oil States International | Bristow vs. Geospace Technologies | Bristow vs. Weatherford International PLC | Bristow vs. Enerflex |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |