Correlation Between US Silica and TechnipFMC PLC
Can any of the company-specific risk be diversified away by investing in both US Silica and TechnipFMC PLC 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 US Silica and TechnipFMC PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Silica Holdings and TechnipFMC PLC, you can compare the effects of market volatilities on US Silica and TechnipFMC PLC 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 US Silica with a short position of TechnipFMC PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Silica and TechnipFMC PLC.
Diversification Opportunities for US Silica and TechnipFMC PLC
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between SLCA and TechnipFMC is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding US Silica Holdings and TechnipFMC PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechnipFMC PLC and US Silica 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 US Silica Holdings are associated (or correlated) with TechnipFMC PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechnipFMC PLC has no effect on the direction of US Silica i.e., US Silica and TechnipFMC PLC go up and down completely randomly.
Pair Corralation between US Silica and TechnipFMC PLC
If you would invest 2,545 in TechnipFMC PLC on September 2, 2024 and sell it today you would earn a total of 592.00 from holding TechnipFMC PLC or generate 23.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
US Silica Holdings vs. TechnipFMC PLC
Performance |
| Timeline |
| US Silica Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TechnipFMC PLC |
US Silica and TechnipFMC PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Silica and TechnipFMC PLC
The main advantage of trading using opposite US Silica and TechnipFMC PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Silica position performs unexpectedly, TechnipFMC PLC 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 TechnipFMC PLC will offset losses from the drop in TechnipFMC PLC's long position.| US Silica vs. Newpark Resources | US Silica vs. North American Construction | US Silica vs. ProPetro Holding Corp | US Silica vs. Ranger Energy Services |
| TechnipFMC PLC vs. Oceaneering International | TechnipFMC PLC vs. NOV Inc | TechnipFMC PLC vs. Flowserve | TechnipFMC PLC vs. Core Laboratories NV |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |