Correlation Between Select Energy and CCC
Can any of the company-specific risk be diversified away by investing in both Select Energy and CCC 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 Select Energy and CCC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Select Energy Services and CCC, you can compare the effects of market volatilities on Select Energy and CCC 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 Select Energy with a short position of CCC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Select Energy and CCC.
Diversification Opportunities for Select Energy and CCC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Select and CCC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Select Energy Services and CCC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCC and Select Energy 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 Select Energy Services are associated (or correlated) with CCC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCC has no effect on the direction of Select Energy i.e., Select Energy and CCC go up and down completely randomly.
Pair Corralation between Select Energy and CCC
If you would invest 853.00 in Select Energy Services on December 30, 2023 and sell it today you would earn a total of 70.00 from holding Select Energy Services or generate 8.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Select Energy Services vs. CCC
Performance |
Timeline |
Select Energy Services |
CCC |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Select Energy and CCC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Select Energy and CCC
The main advantage of trading using opposite Select Energy and CCC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Select Energy position performs unexpectedly, CCC 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 CCC will offset losses from the drop in CCC's long position.Select Energy vs. Chemours Co | Select Energy vs. Dupont De Nemours | Select Energy vs. FutureFuel Corp | Select Energy vs. Danimer Scientific |
CCC vs. Kinsale Capital Group | CCC vs. Aegon NV ADR | CCC vs. Playtika Holding Corp | CCC vs. NanoTech Gaming |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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