Correlation Between Sixty Six and Expro Group

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

By analyzing existing cross correlation between Sixty Six Oilfield and Expro Group Holdings, you can compare the effects of market volatilities on Sixty Six and Expro Group 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 Sixty Six with a short position of Expro Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixty Six and Expro Group.

Diversification Opportunities for Sixty Six and Expro Group

0.0

Correlation Coefficient

Sixty Six  Expro Group

Pay attention - limited upside

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

Pair Corralation between Sixty Six and Expro Group

If you would invest  0.01  in Sixty Six Oilfield on December 28, 2024 and sell it today you would earn a total of  0.00  from holding Sixty Six Oilfield or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.77%
Values	Daily Returns

Sixty Six Oilfield  vs.  Expro Group Holdings

Sixty Six Oilfield

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sixty Six Oilfield has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Sixty Six is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Expro Group Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Expro Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Sixty Six and Expro Group

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

The idea behind Sixty Six Oilfield and Expro Group Holdings 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.