Correlation Between Cactus and Bristow
Can any of the company-specific risk be diversified away by investing in both Cactus 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 Cactus and Bristow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cactus Inc and Bristow Group, you can compare the effects of market volatilities on Cactus 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 Cactus with a short position of Bristow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cactus and Bristow.
Diversification Opportunities for Cactus and Bristow
Excellent diversification
The 3 months correlation between Cactus and Bristow is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cactus Inc and Bristow Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bristow Group and Cactus 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 Cactus Inc 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 Cactus i.e., Cactus and Bristow go up and down completely randomly.
Pair Corralation between Cactus and Bristow
Considering the 90-day investment horizon Cactus Inc is expected to under-perform the Bristow. In addition to that, Cactus is 1.27 times more volatile than Bristow Group. It trades about -0.02 of its total potential returns per unit of risk. Bristow Group is currently generating about 0.16 per unit of volatility. If you would invest 3,098 in Bristow Group on June 9, 2025 and sell it today you would earn a total of 684.00 from holding Bristow Group or generate 22.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cactus Inc vs. Bristow Group
Performance |
| Timeline |
| Cactus Inc |
| Bristow Group |
Cactus and Bristow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cactus and Bristow
The main advantage of trading using opposite Cactus and Bristow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cactus 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.| Cactus vs. RPC Inc | Cactus vs. Bristow Group | Cactus vs. Ranger Energy Services | Cactus vs. Select Energy Services |
| Bristow vs. Expro Group Holdings | Bristow vs. Ranger Energy Services | Bristow vs. Cactus Inc | Bristow vs. MRC Global |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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