Correlation Between Mammoth Energy and Forum Energy
Can any of the company-specific risk be diversified away by investing in both Mammoth Energy and Forum 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 Mammoth Energy and Forum Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mammoth Energy Services and Forum Energy Technologies, you can compare the effects of market volatilities on Mammoth Energy and Forum 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 Mammoth Energy with a short position of Forum Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mammoth Energy and Forum Energy.
Diversification Opportunities for Mammoth Energy and Forum Energy
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mammoth and Forum is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Mammoth Energy Services and Forum Energy Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forum Energy Technologies and Mammoth Energy 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 Mammoth Energy Services are associated (or correlated) with Forum Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forum Energy Technologies has no effect on the direction of Mammoth Energy i.e., Mammoth Energy and Forum Energy go up and down completely randomly.
Pair Corralation between Mammoth Energy and Forum Energy
Given the investment horizon of 90 days Mammoth Energy Services is expected to generate 1.61 times more return on investment than Forum Energy. However, Mammoth Energy is 1.61 times more volatile than Forum Energy Technologies. It trades about 0.0 of its potential returns per unit of risk. Forum Energy Technologies is currently generating about -0.1 per unit of risk. If you would invest 378.00 in Mammoth Energy Services on August 28, 2024 and sell it today you would lose (12.00) from holding Mammoth Energy Services or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mammoth Energy Services vs. Forum Energy Technologies
Performance |
| Timeline |
| Mammoth Energy Services |
| Forum Energy Technologies |
Mammoth Energy and Forum Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mammoth Energy and Forum Energy
The main advantage of trading using opposite Mammoth Energy and Forum Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mammoth Energy position performs unexpectedly, Forum 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 Forum Energy will offset losses from the drop in Forum Energy's long position.| Mammoth Energy vs. Matthews International | Mammoth Energy vs. Griffon | Mammoth Energy vs. Steel Partners Holdings | Mammoth Energy vs. Compass Diversified Holdings |
| Forum Energy vs. ProPetro Holding Corp | Forum Energy vs. RPC Inc | Forum Energy vs. MRC Global | Forum Energy vs. Expro Group Holdings |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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