Correlation Between Weatherford International and Cameron International
Can any of the company-specific risk be diversified away by investing in both Weatherford International and Cameron International 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 Weatherford International and Cameron International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weatherford International Plc and Cameron International Corp, you can compare the effects of market volatilities on Weatherford International and Cameron International 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 Weatherford International with a short position of Cameron International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weatherford International and Cameron International.
Diversification Opportunities for Weatherford International and Cameron International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Weatherford and Cameron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Weatherford International Plc and Cameron International Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cameron International and Weatherford International 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 Weatherford International Plc are associated (or correlated) with Cameron International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cameron International has no effect on the direction of Weatherford International i.e., Weatherford International and Cameron International go up and down completely randomly.
Pair Corralation between Weatherford International and Cameron International
If you would invest (100.00) in Cameron International Corp on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Cameron International Corp or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Weatherford International Plc vs. Cameron International Corp
Performance |
Timeline |
Weatherford International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cameron International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Weatherford International and Cameron International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Weatherford International and Cameron International
The main advantage of trading using opposite Weatherford International and Cameron International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weatherford International position performs unexpectedly, Cameron International 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 Cameron International will offset losses from the drop in Cameron International's long position.Weatherford International vs. Sonos Inc | Weatherford International vs. United Parks Resorts | Weatherford International vs. PGE Corp | Weatherford International vs. Brunswick |
Cameron International vs. National CineMedia | Cameron International vs. SunLink Health Systems | Cameron International vs. Lizhan Environmental | Cameron International vs. Quanex Building Products |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
CEOs Directory Screen CEOs from public companies around the world | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Stocks Directory Find actively traded stocks across global markets | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |