Correlation Between Calfrac Well and Subsea 7

Can any of the company-specific risk be diversified away by investing in both Calfrac Well and Subsea 7 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 Subsea 7 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 Subsea 7 SA, you can compare the effects of market volatilities on Calfrac Well and Subsea 7 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 Subsea 7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calfrac Well and Subsea 7.

Diversification Opportunities for Calfrac Well and Subsea 7

0.0

Correlation Coefficient

Calfrac Well  Subsea 7

Pay attention - limited upside

The 3 months correlation between Calfrac and Subsea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Calfrac Well Services and Subsea 7 SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Subsea 7 SA 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 Subsea 7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Subsea 7 SA has no effect on the direction of Calfrac Well i.e., Calfrac Well and Subsea 7 go up and down completely randomly.

Pair Corralation between Calfrac Well and Subsea 7

If you would invest  243.00  in Calfrac Well Services on May 7, 2025 and sell it today you would earn a total of  25.00  from holding Calfrac Well Services or generate 10.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Calfrac Well Services  vs.  Subsea 7 SA

Calfrac Well Services

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Calfrac Well Services are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Calfrac Well may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Subsea 7 SA

Risk-Adjusted Performance

Weakest

Over the last 90 days Subsea 7 SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, Subsea 7 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Calfrac Well and Subsea 7

The main advantage of trading using opposite Calfrac Well and Subsea 7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calfrac Well position performs unexpectedly, Subsea 7 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 Subsea 7 will offset losses from the drop in Subsea 7's long position.

The idea behind Calfrac Well Services and Subsea 7 SA 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.