Correlation Between 456837AV5 and Patterson UTI
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By analyzing existing cross correlation between ING GROEP NV and Patterson UTI Energy, you can compare the effects of market volatilities on 456837AV5 and Patterson UTI 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 456837AV5 with a short position of Patterson UTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of 456837AV5 and Patterson UTI.
Diversification Opportunities for 456837AV5 and Patterson UTI
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 456837AV5 and Patterson is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding ING GROEP NV and Patterson UTI Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patterson UTI Energy and 456837AV5 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 ING GROEP NV are associated (or correlated) with Patterson UTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patterson UTI Energy has no effect on the direction of 456837AV5 i.e., 456837AV5 and Patterson UTI go up and down completely randomly.
Pair Corralation between 456837AV5 and Patterson UTI
Assuming the 90 days trading horizon ING GROEP NV is expected to generate 0.25 times more return on investment than Patterson UTI. However, ING GROEP NV is 3.99 times less risky than Patterson UTI. It trades about -0.03 of its potential returns per unit of risk. Patterson UTI Energy is currently generating about -0.03 per unit of risk. If you would invest 9,113 in ING GROEP NV on September 4, 2024 and sell it today you would lose (309.00) from holding ING GROEP NV or give up 3.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.47% |
| Values | Daily Returns |
ING GROEP NV vs. Patterson UTI Energy
Performance |
| Timeline |
| ING GROEP NV |
| Patterson UTI Energy |
456837AV5 and Patterson UTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 456837AV5 and Patterson UTI
The main advantage of trading using opposite 456837AV5 and Patterson UTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 456837AV5 position performs unexpectedly, Patterson UTI 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 Patterson UTI will offset losses from the drop in Patterson UTI's long position.| 456837AV5 vs. Patterson UTI Energy | 456837AV5 vs. Usio Inc | 456837AV5 vs. Lindblad Expeditions Holdings | 456837AV5 vs. Seadrill Limited |
| Patterson UTI vs. Nabors Industries | Patterson UTI vs. Precision Drilling | Patterson UTI vs. Noble plc | Patterson UTI vs. Helmerich and Payne |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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