Correlation Between Expro Group and Liberty Oilfield
Can any of the company-specific risk be diversified away by investing in both Expro Group and Liberty Oilfield 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 Liberty Oilfield 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 Liberty Oilfield Services, you can compare the effects of market volatilities on Expro Group and Liberty Oilfield 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 Liberty Oilfield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expro Group and Liberty Oilfield.
Diversification Opportunities for Expro Group and Liberty Oilfield
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Expro and Liberty is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Expro Group Holdings and Liberty Oilfield Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Oilfield Services 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 Liberty Oilfield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Oilfield Services has no effect on the direction of Expro Group i.e., Expro Group and Liberty Oilfield go up and down completely randomly.
Pair Corralation between Expro Group and Liberty Oilfield
Given the investment horizon of 90 days Expro Group Holdings is expected to generate 1.04 times more return on investment than Liberty Oilfield. However, Expro Group is 1.04 times more volatile than Liberty Oilfield Services. It trades about 0.14 of its potential returns per unit of risk. Liberty Oilfield Services is currently generating about 0.13 per unit of risk. If you would invest 1,278 in Expro Group Holdings on September 3, 2024 and sell it today you would earn a total of 111.00 from holding Expro Group Holdings or generate 8.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expro Group Holdings vs. Liberty Oilfield Services
Performance |
| Timeline |
| Expro Group Holdings |
| Liberty Oilfield Services |
Expro Group and Liberty Oilfield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expro Group and Liberty Oilfield
The main advantage of trading using opposite Expro Group and Liberty Oilfield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expro Group position performs unexpectedly, Liberty Oilfield 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 Liberty Oilfield will offset losses from the drop in Liberty Oilfield's long position.| Expro Group vs. ChampionX | Expro Group vs. Ranger Energy Services | Expro Group vs. Cactus Inc | Expro Group vs. MRC Global |
| Liberty Oilfield vs. Ranger Energy Services | Liberty Oilfield vs. ProFrac Holding Corp | Liberty Oilfield vs. Archrock | Liberty Oilfield vs. Newpark Resources |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |