Correlation Between Trican Well and Secure Energy
Can any of the company-specific risk be diversified away by investing in both Trican Well and Secure 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 Trican Well and Secure Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trican Well Service and Secure Energy Services, you can compare the effects of market volatilities on Trican Well and Secure 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 Trican Well with a short position of Secure Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trican Well and Secure Energy.
Diversification Opportunities for Trican Well and Secure Energy
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Trican and Secure is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Trican Well Service and Secure Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secure Energy Services and Trican Well 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 Trican Well Service are associated (or correlated) with Secure Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secure Energy Services has no effect on the direction of Trican Well i.e., Trican Well and Secure Energy go up and down completely randomly.
Pair Corralation between Trican Well and Secure Energy
Assuming the 90 days trading horizon Trican Well is expected to generate 2.22 times less return on investment than Secure Energy. In addition to that, Trican Well is 1.03 times more volatile than Secure Energy Services. It trades about 0.04 of its total potential returns per unit of risk. Secure Energy Services is currently generating about 0.1 per unit of volatility. If you would invest 639.00 in Secure Energy Services on August 27, 2024 and sell it today you would earn a total of 979.00 from holding Secure Energy Services or generate 153.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trican Well Service vs. Secure Energy Services
Performance |
| Timeline |
| Trican Well Service |
| Secure Energy Services |
Trican Well and Secure Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trican Well and Secure Energy
The main advantage of trading using opposite Trican Well and Secure Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trican Well position performs unexpectedly, Secure 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 Secure Energy will offset losses from the drop in Secure Energy's long position.| Trican Well vs. Calfrac Well Services | Trican Well vs. Precision Drilling | Trican Well vs. Ensign Energy Services | Trican Well vs. Birchcliff Energy |
| Secure Energy vs. CES Energy Solutions | Secure Energy vs. Ensign Energy Services | Secure Energy vs. Enerflex | Secure Energy vs. Pason Systems |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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