Correlation Between Core Laboratories and TechnipFMC PLC

Can any of the company-specific risk be diversified away by investing in both Core Laboratories and TechnipFMC PLC 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 Core Laboratories and TechnipFMC PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Core Laboratories NV and TechnipFMC PLC, you can compare the effects of market volatilities on Core Laboratories and TechnipFMC PLC 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 Core Laboratories with a short position of TechnipFMC PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Laboratories and TechnipFMC PLC.

Diversification Opportunities for Core Laboratories and TechnipFMC PLC

0.25

Correlation Coefficient

Core Laboratories  TechnipFMC PLC

Modest diversification

The 3 months correlation between Core and TechnipFMC is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Core Laboratories NV and TechnipFMC PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechnipFMC PLC and Core Laboratories 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 Core Laboratories NV are associated (or correlated) with TechnipFMC PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechnipFMC PLC has no effect on the direction of Core Laboratories i.e., Core Laboratories and TechnipFMC PLC go up and down completely randomly.

Pair Corralation between Core Laboratories and TechnipFMC PLC

Considering the 90-day investment horizon Core Laboratories is expected to generate 2.45 times less return on investment than TechnipFMC PLC. In addition to that, Core Laboratories is 1.67 times more volatile than TechnipFMC PLC. It trades about 0.03 of its total potential returns per unit of risk. TechnipFMC PLC is currently generating about 0.11 per unit of volatility. If you would invest  3,463  in TechnipFMC PLC on June 15, 2025 and sell it today you would earn a total of  522.00  from holding TechnipFMC PLC or generate 15.07% return on investment over 90 days.

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

Core Laboratories NV  vs.  TechnipFMC PLC

Core Laboratories

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Core Laboratories NV are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak essential indicators, Core Laboratories may actually be approaching a critical reversion point that can send shares even higher in October 2025.

TechnipFMC PLC

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in TechnipFMC PLC are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, TechnipFMC PLC demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Core Laboratories and TechnipFMC PLC

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

The idea behind Core Laboratories NV and TechnipFMC PLC 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.