Correlation Between Newpark Resources and Raise Production
Can any of the company-specific risk be diversified away by investing in both Newpark Resources and Raise Production 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 Newpark Resources and Raise Production into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newpark Resources and Raise Production, you can compare the effects of market volatilities on Newpark Resources and Raise Production 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 Newpark Resources with a short position of Raise Production. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newpark Resources and Raise Production.
Diversification Opportunities for Newpark Resources and Raise Production
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Newpark and Raise is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Newpark Resources and Raise Production in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raise Production and Newpark Resources 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 Newpark Resources are associated (or correlated) with Raise Production. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raise Production has no effect on the direction of Newpark Resources i.e., Newpark Resources and Raise Production go up and down completely randomly.
Pair Corralation between Newpark Resources and Raise Production
If you would invest (100.00) in Raise Production on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Raise Production 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 |
Newpark Resources vs. Raise Production
Performance |
Timeline |
Newpark Resources |
Raise Production |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Newpark Resources and Raise Production Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Newpark Resources and Raise Production
The main advantage of trading using opposite Newpark Resources and Raise Production positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newpark Resources position performs unexpectedly, Raise Production 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 Raise Production will offset losses from the drop in Raise Production's long position.Newpark Resources vs. Expro Group Holdings | Newpark Resources vs. MRC Global | Newpark Resources vs. Now Inc |
Raise Production vs. Upper Street Marketing | Raise Production vs. Axalta Coating Systems | Raise Production vs. Alto Ingredients | Raise Production vs. Park Electrochemical |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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