Correlation Between Expro Group and Tidewater
Can any of the company-specific risk be diversified away by investing in both Expro Group and Tidewater 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 Tidewater 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 Tidewater, you can compare the effects of market volatilities on Expro Group and Tidewater 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 Tidewater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expro Group and Tidewater.
Diversification Opportunities for Expro Group and Tidewater
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Expro and Tidewater is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Expro Group Holdings and Tidewater in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tidewater 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 Tidewater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tidewater has no effect on the direction of Expro Group i.e., Expro Group and Tidewater go up and down completely randomly.
Pair Corralation between Expro Group and Tidewater
Given the investment horizon of 90 days Expro Group is expected to generate 4.71 times less return on investment than Tidewater. But when comparing it to its historical volatility, Expro Group Holdings is 1.09 times less risky than Tidewater. It trades about 0.01 of its potential returns per unit of risk. Tidewater is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,940 in Tidewater on August 30, 2024 and sell it today you would earn a total of 2,087 from holding Tidewater or generate 70.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expro Group Holdings vs. Tidewater
Performance |
| Timeline |
| Expro Group Holdings |
| Tidewater |
Expro Group and Tidewater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expro Group and Tidewater
The main advantage of trading using opposite Expro Group and Tidewater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expro Group position performs unexpectedly, Tidewater 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 Tidewater will offset losses from the drop in Tidewater's long position.| Expro Group vs. ChampionX | Expro Group vs. Ranger Energy Services | Expro Group vs. Cactus Inc | Expro Group vs. MRC Global |
| Tidewater vs. Weatherford International PLC | Tidewater vs. NOV Inc | Tidewater vs. Liberty Oilfield Services | Tidewater vs. TechnipFMC PLC |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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