Correlation Between Expro Group and RPC

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

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

Diversification Opportunities for Expro Group and RPC

0.92

Correlation Coefficient

Expro Group  RPC

Almost no diversification

The 3 months correlation between Expro and RPC is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Expro Group Holdings and RPC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RPC Inc and Expro Group 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 Expro Group Holdings are associated (or correlated) with RPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RPC Inc has no effect on the direction of Expro Group i.e., Expro Group and RPC go up and down completely randomly.

Pair Corralation between Expro Group and RPC

Given the investment horizon of 90 days Expro Group Holdings is expected to under-perform the RPC. In addition to that, Expro Group is 1.37 times more volatile than RPC Inc. It trades about -0.04 of its total potential returns per unit of risk. RPC Inc is currently generating about -0.01 per unit of volatility. If you would invest  574.00  in RPC Inc on December 26, 2024 and sell it today you would lose (18.00) from holding RPC Inc or give up 3.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Expro Group Holdings  vs.  RPC Inc

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.

RPC Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days RPC Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, RPC 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 Expro Group and RPC

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

The idea behind Expro Group Holdings and RPC Inc 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.

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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.