Correlation Between Trican Well and Shawcor
Can any of the company-specific risk be diversified away by investing in both Trican Well and Shawcor 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 Shawcor 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 Shawcor, you can compare the effects of market volatilities on Trican Well and Shawcor 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 Shawcor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trican Well and Shawcor.
Diversification Opportunities for Trican Well and Shawcor
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Trican and Shawcor is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Trican Well Service and Shawcor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shawcor 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 Shawcor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shawcor has no effect on the direction of Trican Well i.e., Trican Well and Shawcor go up and down completely randomly.
Pair Corralation between Trican Well and Shawcor
If you would invest 329.00 in Trican Well Service on September 1, 2024 and sell it today you would earn a total of 18.00 from holding Trican Well Service or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Trican Well Service vs. Shawcor
Performance |
| Timeline |
| Trican Well Service |
| Shawcor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Trican Well and Shawcor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trican Well and Shawcor
The main advantage of trading using opposite Trican Well and Shawcor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trican Well position performs unexpectedly, Shawcor 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 Shawcor will offset losses from the drop in Shawcor's long position.| Trican Well vs. Petroleo Brasileiro Petrobras | Trican Well vs. Equinor ASA ADR | Trican Well vs. Eni SpA ADR | Trican Well vs. YPF Sociedad Anonima |
| Shawcor vs. STEP Energy Services | Shawcor vs. Total Energy Services | Shawcor vs. Trican Well Service | Shawcor vs. High Arctic Energy |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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