Correlation Between Sixty Six and Sohm
Can any of the company-specific risk be diversified away by investing in both Sixty Six and Sohm 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 Sixty Six and Sohm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixty Six Oilfield and Sohm Inc, you can compare the effects of market volatilities on Sixty Six and Sohm 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 Sixty Six with a short position of Sohm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixty Six and Sohm.
Diversification Opportunities for Sixty Six and Sohm
Good diversification
The 3 months correlation between Sixty and Sohm is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sixty Six Oilfield and Sohm Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sohm Inc and Sixty Six 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 Sixty Six Oilfield are associated (or correlated) with Sohm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sohm Inc has no effect on the direction of Sixty Six i.e., Sixty Six and Sohm go up and down completely randomly.
Pair Corralation between Sixty Six and Sohm
If you would invest 0.04 in Sixty Six Oilfield on August 27, 2024 and sell it today you would lose (0.03) from holding Sixty Six Oilfield or give up 75.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Sixty Six Oilfield vs. Sohm Inc
Performance |
| Timeline |
| Sixty Six Oilfield |
| Sohm Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sixty Six and Sohm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixty Six and Sohm
The main advantage of trading using opposite Sixty Six and Sohm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixty Six position performs unexpectedly, Sohm 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 Sohm will offset losses from the drop in Sohm's long position.| Sixty Six vs. Expro Group Holdings | Sixty Six vs. ChampionX | Sixty Six vs. Ranger Energy Services | Sixty Six vs. Cactus Inc |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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