Correlation Between Expro Group and Baker Hughes
Can any of the company-specific risk be diversified away by investing in both Expro Group and Baker Hughes 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 Expro Group and Baker Hughes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expro Group Holdings and Baker Hughes Co, you can compare the effects of market volatilities on Expro Group and Baker Hughes 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 Expro Group with a short position of Baker Hughes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expro Group and Baker Hughes.
Diversification Opportunities for Expro Group and Baker Hughes
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Expro and Baker is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Expro Group Holdings and Baker Hughes Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baker Hughes and Expro Group 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 Expro Group Holdings are associated (or correlated) with Baker Hughes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baker Hughes has no effect on the direction of Expro Group i.e., Expro Group and Baker Hughes go up and down completely randomly.
Pair Corralation between Expro Group and Baker Hughes
Given the investment horizon of 90 days Expro Group is expected to generate 2.96 times less return on investment than Baker Hughes. In addition to that, Expro Group is 1.3 times more volatile than Baker Hughes Co. It trades about 0.08 of its total potential returns per unit of risk. Baker Hughes Co is currently generating about 0.3 per unit of volatility. If you would invest 3,719 in Baker Hughes Co on August 27, 2024 and sell it today you would earn a total of 636.00 from holding Baker Hughes Co or generate 17.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expro Group Holdings vs. Baker Hughes Co
Performance |
| Timeline |
| Expro Group Holdings |
| Baker Hughes |
Expro Group and Baker Hughes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expro Group and Baker Hughes
The main advantage of trading using opposite Expro Group and Baker Hughes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expro Group position performs unexpectedly, Baker Hughes 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 Baker Hughes will offset losses from the drop in Baker Hughes' long position.| Expro Group vs. ChampionX | Expro Group vs. Ranger Energy Services | Expro Group vs. Cactus Inc | Expro Group vs. MRC Global |
| Baker Hughes vs. Schlumberger NV | Baker Hughes vs. NOV Inc | Baker Hughes vs. Weatherford International PLC | Baker Hughes vs. Tenaris SA ADR |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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