Correlation Between PATTERSON and Titan Machinery
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By analyzing existing cross correlation between PATTERSON UTI ENERGY INC and Titan Machinery, you can compare the effects of market volatilities on PATTERSON and Titan Machinery 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 PATTERSON with a short position of Titan Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of PATTERSON and Titan Machinery.
Diversification Opportunities for PATTERSON and Titan Machinery
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between PATTERSON and Titan is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding PATTERSON UTI ENERGY INC and Titan Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Titan Machinery and PATTERSON 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 PATTERSON UTI ENERGY INC are associated (or correlated) with Titan Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Titan Machinery has no effect on the direction of PATTERSON i.e., PATTERSON and Titan Machinery go up and down completely randomly.
Pair Corralation between PATTERSON and Titan Machinery
Assuming the 90 days trading horizon PATTERSON UTI ENERGY INC is expected to generate 0.19 times more return on investment than Titan Machinery. However, PATTERSON UTI ENERGY INC is 5.33 times less risky than Titan Machinery. It trades about 0.04 of its potential returns per unit of risk. Titan Machinery is currently generating about -0.01 per unit of risk. If you would invest 9,609 in PATTERSON UTI ENERGY INC on November 28, 2024 and sell it today you would earn a total of 52.00 from holding PATTERSON UTI ENERGY INC or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PATTERSON UTI ENERGY INC vs. Titan Machinery
Performance |
| Timeline |
| PATTERSON UTI ENERGY |
| Titan Machinery |
PATTERSON and Titan Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PATTERSON and Titan Machinery
The main advantage of trading using opposite PATTERSON and Titan Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PATTERSON position performs unexpectedly, Titan Machinery 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 Titan Machinery will offset losses from the drop in Titan Machinery's long position.| PATTERSON vs. LB Foster | PATTERSON vs. Cytek Biosciences | PATTERSON vs. Alvotech | PATTERSON vs. Weyco Group |
| Titan Machinery vs. DXP Enterprises | Titan Machinery vs. Watsco Inc | Titan Machinery vs. Distribution Solutions Group | Titan Machinery vs. SiteOne Landscape Supply |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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