Correlation Between Expro Group and Sixty Six
Can any of the company-specific risk be diversified away by investing in both Expro Group and Sixty Six 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 Sixty Six 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 Sixty Six Oilfield, you can compare the effects of market volatilities on Expro Group and Sixty Six 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 Sixty Six. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expro Group and Sixty Six.
Diversification Opportunities for Expro Group and Sixty Six
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Expro and Sixty is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Expro Group Holdings and Sixty Six Oilfield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixty Six Oilfield 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 Sixty Six. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixty Six Oilfield has no effect on the direction of Expro Group i.e., Expro Group and Sixty Six go up and down completely randomly.
Pair Corralation between Expro Group and Sixty Six
Given the investment horizon of 90 days Expro Group Holdings is expected to generate 0.32 times more return on investment than Sixty Six. However, Expro Group Holdings is 3.15 times less risky than Sixty Six. It trades about 0.08 of its potential returns per unit of risk. Sixty Six Oilfield is currently generating about -0.21 per unit of risk. If you would invest 1,346 in Expro Group Holdings on August 31, 2024 and sell it today you would earn a total of 69.00 from holding Expro Group Holdings or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expro Group Holdings vs. Sixty Six Oilfield
Performance |
| Timeline |
| Expro Group Holdings |
| Sixty Six Oilfield |
Expro Group and Sixty Six Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expro Group and Sixty Six
The main advantage of trading using opposite Expro Group and Sixty Six positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expro Group position performs unexpectedly, Sixty Six 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 Sixty Six will offset losses from the drop in Sixty Six's long position.| Expro Group vs. ChampionX | Expro Group vs. Ranger Energy Services | Expro Group vs. Cactus Inc | Expro Group vs. MRC Global |
| Sixty Six vs. Expro Group Holdings | Sixty Six vs. ChampionX | Sixty Six vs. Ranger Energy Services | Sixty Six vs. Cactus Inc |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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