Correlation Between Bristow and Expro Group
Can any of the company-specific risk be diversified away by investing in both Bristow and Expro Group 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 Bristow and Expro Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bristow Group and Expro Group Holdings, you can compare the effects of market volatilities on Bristow and Expro Group 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 Bristow with a short position of Expro Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bristow and Expro Group.
Diversification Opportunities for Bristow and Expro Group
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bristow and Expro is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bristow Group and Expro Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expro Group Holdings and Bristow 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 Bristow Group are associated (or correlated) with Expro Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expro Group Holdings has no effect on the direction of Bristow i.e., Bristow and Expro Group go up and down completely randomly.
Pair Corralation between Bristow and Expro Group
Given the investment horizon of 90 days Bristow Group is expected to generate 0.72 times more return on investment than Expro Group. However, Bristow Group is 1.4 times less risky than Expro Group. It trades about 0.23 of its potential returns per unit of risk. Expro Group Holdings is currently generating about 0.08 per unit of risk. If you would invest 3,387 in Bristow Group on August 27, 2024 and sell it today you would earn a total of 409.00 from holding Bristow Group or generate 12.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bristow Group vs. Expro Group Holdings
Performance |
| Timeline |
| Bristow Group |
| Expro Group Holdings |
Bristow and Expro Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bristow and Expro Group
The main advantage of trading using opposite Bristow and Expro Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bristow position performs unexpectedly, Expro Group 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 Expro Group will offset losses from the drop in Expro Group's long position.| Bristow vs. Oil States International | Bristow vs. Geospace Technologies | Bristow vs. Weatherford International PLC | Bristow vs. Enerflex |
| Expro Group vs. ChampionX | Expro Group vs. Ranger Energy Services | Expro Group vs. Cactus Inc | Expro Group vs. MRC Global |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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