Correlation Between TechnipFMC PLC and Bristow
Can any of the company-specific risk be diversified away by investing in both TechnipFMC PLC and Bristow 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 TechnipFMC PLC and Bristow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TechnipFMC PLC and Bristow Group, you can compare the effects of market volatilities on TechnipFMC PLC and Bristow 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 TechnipFMC PLC with a short position of Bristow. Check out your portfolio center. Please also check ongoing floating volatility patterns of TechnipFMC PLC and Bristow.
Diversification Opportunities for TechnipFMC PLC and Bristow
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TechnipFMC and Bristow is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding TechnipFMC PLC and Bristow Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bristow Group and TechnipFMC PLC 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 TechnipFMC PLC are associated (or correlated) with Bristow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bristow Group has no effect on the direction of TechnipFMC PLC i.e., TechnipFMC PLC and Bristow go up and down completely randomly.
Pair Corralation between TechnipFMC PLC and Bristow
Considering the 90-day investment horizon TechnipFMC PLC is expected to generate 1.0 times more return on investment than Bristow. However, TechnipFMC PLC is 1.0 times more volatile than Bristow Group. It trades about 0.06 of its potential returns per unit of risk. Bristow Group is currently generating about 0.02 per unit of risk. If you would invest 2,608 in TechnipFMC PLC on March 28, 2025 and sell it today you would earn a total of 886.00 from holding TechnipFMC PLC or generate 33.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
TechnipFMC PLC vs. Bristow Group
Performance |
| Timeline |
| TechnipFMC PLC |
| Bristow Group |
TechnipFMC PLC and Bristow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TechnipFMC PLC and Bristow
The main advantage of trading using opposite TechnipFMC PLC and Bristow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TechnipFMC PLC position performs unexpectedly, Bristow 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 Bristow will offset losses from the drop in Bristow's long position.| TechnipFMC PLC vs. Oceaneering International | TechnipFMC PLC vs. NOV Inc | TechnipFMC PLC vs. Flowserve | TechnipFMC PLC vs. Core Laboratories NV |
| Bristow vs. Oil States International | Bristow vs. Geospace Technologies | Bristow vs. Weatherford International PLC | Bristow vs. Enerflex |
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 Stocks Directory module to find actively traded stocks across global markets.
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