Correlation Between Calfrac Well and Information Services

Can any of the company-specific risk be diversified away by investing in both Calfrac Well and Information Services 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 Calfrac Well and Information Services into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Calfrac Well Services and Information Services, you can compare the effects of market volatilities on Calfrac Well and Information Services 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 Calfrac Well with a short position of Information Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calfrac Well and Information Services.

Diversification Opportunities for Calfrac Well and Information Services

-0.54

Correlation Coefficient

Calfrac Well  Information Services

Excellent diversification

The 3 months correlation between Calfrac and Information is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Calfrac Well Services and Information Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Information Services and Calfrac Well 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 Calfrac Well Services are associated (or correlated) with Information Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Information Services has no effect on the direction of Calfrac Well i.e., Calfrac Well and Information Services go up and down completely randomly.

Pair Corralation between Calfrac Well and Information Services

Assuming the 90 days trading horizon Calfrac Well is expected to generate 5.22 times less return on investment than Information Services. In addition to that, Calfrac Well is 1.14 times more volatile than Information Services. It trades about 0.02 of its total potential returns per unit of risk. Information Services is currently generating about 0.13 per unit of volatility. If you would invest  3,238  in Information Services on July 9, 2025 and sell it today you would earn a total of  441.00  from holding Information Services or generate 13.62% return on investment over 90 days.

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

Calfrac Well Services  vs.  Information Services

Calfrac Well Services

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calfrac Well Services are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Calfrac Well is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Information Services

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Information Services are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Information Services displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Calfrac Well and Information Services

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

The idea behind Calfrac Well Services and Information Services 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.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.