Correlation Between ProPetro Holding and ProFrac Holding
Can any of the company-specific risk be diversified away by investing in both ProPetro 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 ProPetro 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 ProPetro Holding Corp and ProFrac Holding Corp, you can compare the effects of market volatilities on ProPetro 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 ProPetro Holding with a short position of ProFrac Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProPetro Holding and ProFrac Holding.
Diversification Opportunities for ProPetro Holding and ProFrac Holding
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ProPetro and ProFrac is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding ProPetro Holding Corp 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 ProPetro 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 ProPetro Holding Corp 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 ProPetro Holding i.e., ProPetro Holding and ProFrac Holding go up and down completely randomly.
Pair Corralation between ProPetro Holding and ProFrac Holding
Given the investment horizon of 90 days ProPetro Holding Corp is expected to generate 0.61 times more return on investment than ProFrac Holding. However, ProPetro Holding Corp is 1.63 times less risky than ProFrac Holding. It trades about 0.01 of its potential returns per unit of risk. ProFrac Holding Corp is currently generating about -0.14 per unit of risk. If you would invest 569.00 in ProPetro Holding Corp on July 21, 2025 and sell it today you would lose (15.00) from holding ProPetro Holding Corp or give up 2.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProPetro Holding Corp vs. ProFrac Holding Corp
Performance |
| Timeline |
| ProPetro Holding Corp |
| ProFrac Holding Corp |
ProPetro Holding and ProFrac Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProPetro Holding and ProFrac Holding
The main advantage of trading using opposite ProPetro Holding and ProFrac Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProPetro 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.| ProPetro Holding vs. ProFrac Holding Corp | ProPetro Holding vs. Core Laboratories NV | ProPetro Holding vs. Nabors Industries | ProPetro Holding vs. Clean Energy Fuels |
| ProFrac Holding vs. ProPetro Holding Corp | ProFrac Holding vs. Forum Energy Technologies | ProFrac Holding vs. Pason Systems | ProFrac Holding vs. Tetra Technologies |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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