Correlation Between Expro Group and Jutal Offshore

Can any of the company-specific risk be diversified away by investing in both Expro Group and Jutal Offshore 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 Jutal Offshore 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 Jutal Offshore Oil, you can compare the effects of market volatilities on Expro Group and Jutal Offshore 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 Jutal Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expro Group and Jutal Offshore.

Diversification Opportunities for Expro Group and Jutal Offshore

-0.57

Correlation Coefficient

Expro Group  Jutal Offshore

Excellent diversification

The 3 months correlation between Expro and Jutal is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Expro Group Holdings and Jutal Offshore Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jutal Offshore Oil 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 Jutal Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jutal Offshore Oil has no effect on the direction of Expro Group i.e., Expro Group and Jutal Offshore go up and down completely randomly.

Pair Corralation between Expro Group and Jutal Offshore

Given the investment horizon of 90 days Expro Group Holdings is expected to under-perform the Jutal Offshore. In addition to that, Expro Group is 1.21 times more volatile than Jutal Offshore Oil. It trades about -0.14 of its total potential returns per unit of risk. Jutal Offshore Oil is currently generating about 0.14 per unit of volatility. If you would invest  1,560  in Jutal Offshore Oil on September 4, 2024 and sell it today you would earn a total of  350.00  from holding Jutal Offshore Oil or generate 22.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Expro Group Holdings  vs.  Jutal Offshore Oil

Expro Group Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Expro Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Jutal Offshore Oil

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jutal Offshore Oil are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Jutal Offshore showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Expro Group and Jutal Offshore

The main advantage of trading using opposite Expro Group and Jutal Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expro Group position performs unexpectedly, Jutal Offshore 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 Jutal Offshore will offset losses from the drop in Jutal Offshore's long position.

The idea behind Expro Group Holdings and Jutal Offshore Oil pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.