Correlation Between Expro Group and Ranger Energy
Can any of the company-specific risk be diversified away by investing in both Expro Group and Ranger Energy 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 Ranger Energy 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 Ranger Energy Services, you can compare the effects of market volatilities on Expro Group and Ranger Energy 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 Ranger Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expro Group and Ranger Energy.
Diversification Opportunities for Expro Group and Ranger Energy
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Expro and Ranger is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Expro Group Holdings and Ranger Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ranger Energy 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 Ranger Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ranger Energy Services has no effect on the direction of Expro Group i.e., Expro Group and Ranger Energy go up and down completely randomly.
Pair Corralation between Expro Group and Ranger Energy
Given the investment horizon of 90 days Expro Group is expected to generate 4.95 times less return on investment than Ranger Energy. In addition to that, Expro Group is 1.84 times more volatile than Ranger Energy Services. It trades about 0.08 of its total potential returns per unit of risk. Ranger Energy Services is currently generating about 0.7 per unit of volatility. If you would invest 1,259 in Ranger Energy Services on August 27, 2024 and sell it today you would earn a total of 391.00 from holding Ranger Energy Services or generate 31.06% 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. Ranger Energy Services
Performance |
| Timeline |
| Expro Group Holdings |
| Ranger Energy Services |
Expro Group and Ranger Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expro Group and Ranger Energy
The main advantage of trading using opposite Expro Group and Ranger Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expro Group position performs unexpectedly, Ranger Energy 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 Ranger Energy will offset losses from the drop in Ranger Energy's long position.| Expro Group vs. ChampionX | Expro Group vs. Ranger Energy Services | Expro Group vs. Cactus Inc | Expro Group vs. MRC Global |
| Ranger Energy vs. ProPetro Holding Corp | Ranger Energy vs. RPC Inc | Ranger Energy vs. MRC Global | Ranger Energy vs. Expro Group Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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