Correlation Between Expro Group and NOV
Can any of the company-specific risk be diversified away by investing in both Expro Group and NOV 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 NOV 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 NOV Inc, you can compare the effects of market volatilities on Expro Group and NOV 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 NOV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expro Group and NOV.
Diversification Opportunities for Expro Group and NOV
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Expro and NOV is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Expro Group Holdings and NOV Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NOV Inc 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 NOV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NOV Inc has no effect on the direction of Expro Group i.e., Expro Group and NOV go up and down completely randomly.
Pair Corralation between Expro Group and NOV
Given the investment horizon of 90 days Expro Group Holdings is expected to generate 1.4 times more return on investment than NOV. However, Expro Group is 1.4 times more volatile than NOV Inc. It trades about 0.02 of its potential returns per unit of risk. NOV Inc is currently generating about -0.07 per unit of risk. If you would invest 1,275 in Expro Group Holdings on November 4, 2024 and sell it today you would earn a total of 6.00 from holding Expro Group Holdings or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expro Group Holdings vs. NOV Inc
Performance |
| Timeline |
| Expro Group Holdings |
| NOV Inc |
Expro Group and NOV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expro Group and NOV
The main advantage of trading using opposite Expro Group and NOV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expro Group position performs unexpectedly, NOV 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 NOV will offset losses from the drop in NOV's long position.| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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