Correlation Between Calfrac Well and Bri Chem
Can any of the company-specific risk be diversified away by investing in both Calfrac Well and Bri Chem 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 Calfrac Well and Bri Chem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calfrac Well Services and Bri Chem Corp, you can compare the effects of market volatilities on Calfrac Well and Bri Chem 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 Calfrac Well with a short position of Bri Chem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calfrac Well and Bri Chem.
Diversification Opportunities for Calfrac Well and Bri Chem
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calfrac and Bri is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Calfrac Well Services and Bri Chem Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bri Chem Corp and Calfrac Well 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 Calfrac Well Services are associated (or correlated) with Bri Chem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bri Chem Corp has no effect on the direction of Calfrac Well i.e., Calfrac Well and Bri Chem go up and down completely randomly.
Pair Corralation between Calfrac Well and Bri Chem
Assuming the 90 days horizon Calfrac Well Services is expected to under-perform the Bri Chem. But the pink sheet apears to be less risky and, when comparing its historical volatility, Calfrac Well Services is 4.48 times less risky than Bri Chem. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Bri Chem Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 25.00 in Bri Chem Corp on September 17, 2024 and sell it today you would earn a total of 5.00 from holding Bri Chem Corp or generate 20.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Calfrac Well Services vs. Bri Chem Corp
Performance |
Timeline |
Calfrac Well Services |
Bri Chem Corp |
Calfrac Well and Bri Chem Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Calfrac Well and Bri Chem
The main advantage of trading using opposite Calfrac Well and Bri Chem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calfrac Well position performs unexpectedly, Bri Chem 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 Bri Chem will offset losses from the drop in Bri Chem's long position.Calfrac Well vs. POSCO Holdings | Calfrac Well vs. Schweizerische Nationalbank | Calfrac Well vs. Berkshire Hathaway | Calfrac Well vs. Berkshire Hathaway |
Bri Chem vs. HUMANA INC | Bri Chem vs. Barloworld Ltd ADR | Bri Chem vs. Morningstar Unconstrained Allocation | Bri Chem vs. Thrivent High Yield |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |