Correlation Between Precision Drilling and INTNED

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

By analyzing existing cross correlation between Precision Drilling and INTNED 61032 28 MAR 26, you can compare the effects of market volatilities on Precision Drilling and INTNED 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 Precision Drilling with a short position of INTNED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Precision Drilling and INTNED.

Diversification Opportunities for Precision Drilling and INTNED

0.24

Correlation Coefficient

Precision Drilling  INTNED

Modest diversification

The 3 months correlation between Precision and INTNED is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Precision Drilling and INTNED 61032 28 MAR 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTNED 61032 28 and Precision Drilling 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 Precision Drilling are associated (or correlated) with INTNED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTNED 61032 28 has no effect on the direction of Precision Drilling i.e., Precision Drilling and INTNED go up and down completely randomly.

Pair Corralation between Precision Drilling and INTNED

Considering the 90-day investment horizon Precision Drilling is expected to under-perform the INTNED. In addition to that, Precision Drilling is 2.55 times more volatile than INTNED 61032 28 MAR 26. It trades about -0.1 of its total potential returns per unit of risk. INTNED 61032 28 MAR 26 is currently generating about -0.12 per unit of volatility. If you would invest  10,062  in INTNED 61032 28 MAR 26 on September 20, 2024 and sell it today you would lose (252.00) from holding INTNED 61032 28 MAR 26 or give up 2.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	38.1%
Values	Daily Returns

Precision Drilling  vs.  INTNED 61032 28 MAR 26

Precision Drilling

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Precision Drilling has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

INTNED 61032 28

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTNED 61032 28 MAR 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for INTNED 61032 28 MAR 26 investors.

Pair Trading with Precision Drilling and INTNED

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

The idea behind Precision Drilling and INTNED 61032 28 MAR 26 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.