Correlation Between IHS Holding and ProFrac Holding
Can any of the company-specific risk be diversified away by investing in both IHS Holding and ProFrac 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 IHS Holding and ProFrac Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IHS Holding and ProFrac Holding Corp, you can compare the effects of market volatilities on IHS Holding and ProFrac 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 IHS Holding with a short position of ProFrac Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHS Holding and ProFrac Holding.
Diversification Opportunities for IHS Holding and ProFrac Holding
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IHS and ProFrac is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding IHS Holding and ProFrac Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProFrac Holding Corp and IHS 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 IHS Holding are associated (or correlated) with ProFrac Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProFrac Holding Corp has no effect on the direction of IHS Holding i.e., IHS Holding and ProFrac Holding go up and down completely randomly.
Pair Corralation between IHS Holding and ProFrac Holding
Considering the 90-day investment horizon IHS Holding is expected to generate 0.48 times more return on investment than ProFrac Holding. However, IHS Holding is 2.1 times less risky than ProFrac Holding. It trades about 0.12 of its potential returns per unit of risk. ProFrac Holding Corp is currently generating about -0.11 per unit of risk. If you would invest 579.00 in IHS Holding on May 31, 2025 and sell it today you would earn a total of 147.00 from holding IHS Holding or generate 25.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IHS Holding vs. ProFrac Holding Corp
Performance |
| Timeline |
| IHS Holding |
| ProFrac Holding Corp |
IHS Holding and ProFrac Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHS Holding and ProFrac Holding
The main advantage of trading using opposite IHS Holding and ProFrac Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHS Holding position performs unexpectedly, ProFrac 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 ProFrac Holding will offset losses from the drop in ProFrac Holding's long position.| IHS Holding vs. Cogent Communications Group | IHS Holding vs. IDT Corporation | IHS Holding vs. Iridium Communications | IHS Holding vs. Cable One |
| ProFrac Holding vs. Flotek Industries | ProFrac Holding vs. ProPetro Holding Corp | ProFrac Holding vs. Liberty Oilfield Services | ProFrac Holding vs. KLX Energy Services |
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 CEOs Directory module to screen CEOs from public companies around the world.
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