Correlation Between ProFrac Holding and MRC Global

Can any of the company-specific risk be diversified away by investing in both ProFrac Holding and MRC Global 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 ProFrac Holding and MRC Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ProFrac Holding Corp and MRC Global, you can compare the effects of market volatilities on ProFrac Holding and MRC Global 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 ProFrac Holding with a short position of MRC Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProFrac Holding and MRC Global.

Diversification Opportunities for ProFrac Holding and MRC Global

-0.36

Correlation Coefficient

ProFrac Holding  MRC Global

Very good diversification

The 3 months correlation between ProFrac and MRC is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ProFrac Holding Corp and MRC Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MRC Global and ProFrac 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 ProFrac Holding Corp are associated (or correlated) with MRC Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MRC Global has no effect on the direction of ProFrac Holding i.e., ProFrac Holding and MRC Global go up and down completely randomly.

Pair Corralation between ProFrac Holding and MRC Global

Given the investment horizon of 90 days ProFrac Holding Corp is expected to under-perform the MRC Global. In addition to that, ProFrac Holding is 2.47 times more volatile than MRC Global. It trades about -0.07 of its total potential returns per unit of risk. MRC Global is currently generating about 0.1 per unit of volatility. If you would invest  1,262  in MRC Global on May 27, 2025 and sell it today you would earn a total of  216.00  from holding MRC Global or generate 17.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ProFrac Holding Corp  vs.  MRC Global

ProFrac Holding Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days ProFrac Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

MRC Global

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in MRC Global are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal basic indicators, MRC Global exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ProFrac Holding and MRC Global

The main advantage of trading using opposite ProFrac Holding and MRC Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProFrac Holding position performs unexpectedly, MRC Global 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 MRC Global will offset losses from the drop in MRC Global's long position.

The idea behind ProFrac Holding Corp and MRC Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.