Correlation Between Civeo Corp and PFMT Old

Can any of the company-specific risk be diversified away by investing in both Civeo Corp and PFMT Old 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 Civeo Corp and PFMT Old into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Civeo Corp and PFMT Old, you can compare the effects of market volatilities on Civeo Corp and PFMT Old 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 Civeo Corp with a short position of PFMT Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Civeo Corp and PFMT Old.

Diversification Opportunities for Civeo Corp and PFMT Old

0.0

Correlation Coefficient

Civeo Corp  PFMT Old

Pay attention - limited upside

The 3 months correlation between Civeo and PFMT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Civeo Corp and PFMT Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PFMT Old and Civeo Corp 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 Civeo Corp are associated (or correlated) with PFMT Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PFMT Old has no effect on the direction of Civeo Corp i.e., Civeo Corp and PFMT Old go up and down completely randomly.

Pair Corralation between Civeo Corp and PFMT Old

If you would invest  2,231  in Civeo Corp on December 29, 2024 and sell it today you would earn a total of  54.00  from holding Civeo Corp or generate 2.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Civeo Corp  vs.  PFMT Old

Civeo Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Civeo Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Civeo Corp is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

PFMT Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days PFMT Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, PFMT Old is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Civeo Corp and PFMT Old

The main advantage of trading using opposite Civeo Corp and PFMT Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Civeo Corp position performs unexpectedly, PFMT Old 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 PFMT Old will offset losses from the drop in PFMT Old's long position.

The idea behind Civeo Corp and PFMT Old pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.