Correlation Between ChampionX and Core Laboratories
Can any of the company-specific risk be diversified away by investing in both ChampionX and Core Laboratories 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 ChampionX and Core Laboratories into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChampionX and Core Laboratories NV, you can compare the effects of market volatilities on ChampionX and Core Laboratories 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 ChampionX with a short position of Core Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChampionX and Core Laboratories.
Diversification Opportunities for ChampionX and Core Laboratories
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between ChampionX and Core is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding ChampionX and Core Laboratories NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Laboratories and ChampionX 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 ChampionX are associated (or correlated) with Core Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Laboratories has no effect on the direction of ChampionX i.e., ChampionX and Core Laboratories go up and down completely randomly.
Pair Corralation between ChampionX and Core Laboratories
Considering the 90-day investment horizon ChampionX is expected to generate 0.7 times more return on investment than Core Laboratories. However, ChampionX is 1.43 times less risky than Core Laboratories. It trades about 0.12 of its potential returns per unit of risk. Core Laboratories NV is currently generating about -0.04 per unit of risk. If you would invest 2,655 in ChampionX on December 27, 2024 and sell it today you would earn a total of 358.50 from holding ChampionX or generate 13.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
ChampionX vs. Core Laboratories NV
Performance |
Timeline |
ChampionX |
Core Laboratories |
ChampionX and Core Laboratories Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ChampionX and Core Laboratories
The main advantage of trading using opposite ChampionX and Core Laboratories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChampionX position performs unexpectedly, Core Laboratories 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 Core Laboratories will offset losses from the drop in Core Laboratories' long position.ChampionX vs. Expro Group Holdings | ChampionX vs. Ranger Energy Services | ChampionX vs. Cactus Inc | ChampionX vs. MRC Global |
Core Laboratories vs. Bristow Group | Core Laboratories vs. RPC Inc | Core Laboratories vs. NOV Inc | Core Laboratories vs. Oceaneering International |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |