Correlation Between ProFrac Holding and Forum Energy
Can any of the company-specific risk be diversified away by investing in both ProFrac Holding and Forum Energy 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 ProFrac Holding and Forum Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProFrac Holding Corp and Forum Energy Technologies, you can compare the effects of market volatilities on ProFrac Holding and Forum Energy 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 ProFrac Holding with a short position of Forum Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProFrac Holding and Forum Energy.
Diversification Opportunities for ProFrac Holding and Forum Energy
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between ProFrac and Forum is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding ProFrac Holding Corp and Forum Energy Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forum Energy Technologies and ProFrac Holding 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 ProFrac Holding Corp are associated (or correlated) with Forum Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forum Energy Technologies has no effect on the direction of ProFrac Holding i.e., ProFrac Holding and Forum Energy go up and down completely randomly.
Pair Corralation between ProFrac Holding and Forum Energy
Given the investment horizon of 90 days ProFrac Holding is expected to generate 9.8 times less return on investment than Forum Energy. In addition to that, ProFrac Holding is 1.63 times more volatile than Forum Energy Technologies. It trades about 0.01 of its total potential returns per unit of risk. Forum Energy Technologies is currently generating about 0.09 per unit of volatility. If you would invest 1,670 in Forum Energy Technologies on August 7, 2025 and sell it today you would earn a total of 1,234 from holding Forum Energy Technologies or generate 73.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProFrac Holding Corp vs. Forum Energy Technologies
Performance |
| Timeline |
| ProFrac Holding Corp |
| Forum Energy Technologies |
ProFrac Holding and Forum Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProFrac Holding and Forum Energy
The main advantage of trading using opposite ProFrac Holding and Forum Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProFrac Holding position performs unexpectedly, Forum Energy 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 Forum Energy will offset losses from the drop in Forum Energy's long position.| ProFrac Holding vs. ProPetro Holding Corp | ProFrac Holding vs. Forum Energy Technologies | ProFrac Holding vs. Pason Systems | ProFrac Holding vs. Tetra Technologies |
| Forum Energy vs. Geospace Technologies | Forum Energy vs. Natural Gas Services | Forum Energy vs. WT Offshore | Forum Energy vs. Oil States 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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