Correlation Between Eni SPA and ProPetro Holding
Can any of the company-specific risk be diversified away by investing in both Eni SPA and ProPetro Holding 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 Eni SPA and ProPetro Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enterprise Group and ProPetro Holding Corp, you can compare the effects of market volatilities on Eni SPA and ProPetro Holding 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 Eni SPA with a short position of ProPetro Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eni SPA and ProPetro Holding.
Diversification Opportunities for Eni SPA and ProPetro Holding
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eni and ProPetro is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Enterprise Group and ProPetro Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProPetro Holding Corp and Eni SPA 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 Enterprise Group are associated (or correlated) with ProPetro Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProPetro Holding Corp has no effect on the direction of Eni SPA i.e., Eni SPA and ProPetro Holding go up and down completely randomly.
Pair Corralation between Eni SPA and ProPetro Holding
Given the investment horizon of 90 days Eni SPA is expected to generate 1.26 times less return on investment than ProPetro Holding. But when comparing it to its historical volatility, Enterprise Group is 1.22 times less risky than ProPetro Holding. It trades about 0.03 of its potential returns per unit of risk. ProPetro Holding Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 515.00 in ProPetro Holding Corp on July 21, 2025 and sell it today you would earn a total of 39.00 from holding ProPetro Holding Corp or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Enterprise Group vs. ProPetro Holding Corp
Performance |
| Timeline |
| Enterprise Group |
| ProPetro Holding Corp |
Eni SPA and ProPetro Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eni SPA and ProPetro Holding
The main advantage of trading using opposite Eni SPA and ProPetro Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eni SPA position performs unexpectedly, ProPetro Holding 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 ProPetro Holding will offset losses from the drop in ProPetro Holding's long position.| Eni SPA vs. Mccoy Global | Eni SPA vs. Yangarra Resources | Eni SPA vs. Condor Energies | Eni SPA vs. Bonterra Energy Corp |
| ProPetro Holding vs. ProFrac Holding Corp | ProPetro Holding vs. Core Laboratories NV | ProPetro Holding vs. Nabors Industries | ProPetro Holding vs. Clean Energy Fuels |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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