Correlation Between MRC Global and CJ Energy
Can any of the company-specific risk be diversified away by investing in both MRC Global and CJ Energy 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 MRC Global and CJ Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MRC Global and CJ Energy Services, you can compare the effects of market volatilities on MRC Global and CJ Energy 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 MRC Global with a short position of CJ Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of MRC Global and CJ Energy.
Diversification Opportunities for MRC Global and CJ Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MRC and CJ Energy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MRC Global and CJ Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CJ Energy Services and MRC Global 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 MRC Global are associated (or correlated) with CJ Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CJ Energy Services has no effect on the direction of MRC Global i.e., MRC Global and CJ Energy go up and down completely randomly.
Pair Corralation between MRC Global and CJ Energy
If you would invest (100.00) in CJ Energy Services on January 26, 2024 and sell it today you would earn a total of 100.00 from holding CJ Energy Services or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
MRC Global vs. CJ Energy Services
Performance |
| Timeline |
| MRC Global |
| CJ Energy Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MRC Global and CJ Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MRC Global and CJ Energy
The main advantage of trading using opposite MRC Global and CJ Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MRC Global position performs unexpectedly, CJ Energy 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 CJ Energy will offset losses from the drop in CJ Energy's long position.| MRC Global vs. Dril Quip | MRC Global vs. NOV Inc | MRC Global vs. Solaris Oilfield Infrastructure | MRC Global vs. Ranger Energy Services |
| CJ Energy vs. The Coca Cola | CJ Energy vs. ZK International Group | CJ Energy vs. Cementos Pacasmayo SAA | CJ Energy vs. BRC 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |