Correlation Between SOI Old and ProPetro Holding
Can any of the company-specific risk be diversified away by investing in both SOI Old and ProPetro Holding 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 SOI Old and ProPetro Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOI Old and ProPetro Holding Corp, you can compare the effects of market volatilities on SOI Old and ProPetro Holding 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 SOI Old with a short position of ProPetro Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOI Old and ProPetro Holding.
Diversification Opportunities for SOI Old and ProPetro Holding
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SOI and ProPetro is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding SOI Old and ProPetro Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProPetro Holding Corp and SOI Old 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 SOI Old are associated (or correlated) with ProPetro Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProPetro Holding Corp has no effect on the direction of SOI Old i.e., SOI Old and ProPetro Holding go up and down completely randomly.
Pair Corralation between SOI Old and ProPetro Holding
If you would invest 1,152 in SOI Old on November 1, 2024 and sell it today you would earn a total of 0.00 from holding SOI Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
SOI Old vs. ProPetro Holding Corp
Performance |
| Timeline |
| SOI Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ProPetro Holding Corp |
SOI Old and ProPetro Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOI Old and ProPetro Holding
The main advantage of trading using opposite SOI Old and ProPetro Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOI Old position performs unexpectedly, ProPetro Holding 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 ProPetro Holding will offset losses from the drop in ProPetro Holding's long position.| SOI Old vs. Archrock | SOI Old vs. Bristow Group | SOI Old vs. MRC Global | SOI Old vs. Oil States International |
| ProPetro Holding vs. Ranger Energy Services | ProPetro Holding vs. RPC Inc | ProPetro Holding vs. Archrock | ProPetro Holding vs. Bristow Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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