Correlation Between Flowco Holdings and TechnipFMC PLC
Can any of the company-specific risk be diversified away by investing in both Flowco Holdings and TechnipFMC PLC 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 Flowco Holdings and TechnipFMC PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flowco Holdings and TechnipFMC PLC, you can compare the effects of market volatilities on Flowco Holdings and TechnipFMC PLC 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 Flowco Holdings with a short position of TechnipFMC PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flowco Holdings and TechnipFMC PLC.
Diversification Opportunities for Flowco Holdings and TechnipFMC PLC
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Flowco and TechnipFMC is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Flowco Holdings and TechnipFMC PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechnipFMC PLC and Flowco Holdings 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 Flowco Holdings are associated (or correlated) with TechnipFMC PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechnipFMC PLC has no effect on the direction of Flowco Holdings i.e., Flowco Holdings and TechnipFMC PLC go up and down completely randomly.
Pair Corralation between Flowco Holdings and TechnipFMC PLC
Given the investment horizon of 90 days Flowco Holdings is expected to generate 1.67 times more return on investment than TechnipFMC PLC. However, Flowco Holdings is 1.67 times more volatile than TechnipFMC PLC. It trades about 0.19 of its potential returns per unit of risk. TechnipFMC PLC is currently generating about -0.19 per unit of risk. If you would invest 1,755 in Flowco Holdings on April 24, 2025 and sell it today you would earn a total of 180.00 from holding Flowco Holdings or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Flowco Holdings vs. TechnipFMC PLC
Performance |
| Timeline |
| Flowco Holdings |
| TechnipFMC PLC |
Flowco Holdings and TechnipFMC PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flowco Holdings and TechnipFMC PLC
The main advantage of trading using opposite Flowco Holdings and TechnipFMC PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flowco Holdings position performs unexpectedly, TechnipFMC PLC 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 TechnipFMC PLC will offset losses from the drop in TechnipFMC PLC's long position.| Flowco Holdings vs. Innovex International, | Flowco Holdings vs. Now Inc | Flowco Holdings vs. MRC Global | Flowco Holdings vs. RPC Inc |
| TechnipFMC PLC vs. NOV Inc | TechnipFMC PLC vs. Oceaneering International | TechnipFMC PLC vs. Tidewater | TechnipFMC PLC vs. Valaris |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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