Correlation Between Now and Calfrac Well

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

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

Diversification Opportunities for Now and Calfrac Well

0.2

Correlation Coefficient

Now  Calfrac Well

Modest diversification

The 3 months correlation between Now and Calfrac is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Now Inc and Calfrac Well Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calfrac Well Services and Now 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 Now Inc are associated (or correlated) with Calfrac Well. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calfrac Well Services has no effect on the direction of Now i.e., Now and Calfrac Well go up and down completely randomly.

Pair Corralation between Now and Calfrac Well

Given the investment horizon of 90 days Now is expected to generate 3.98 times less return on investment than Calfrac Well. But when comparing it to its historical volatility, Now Inc is 1.22 times less risky than Calfrac Well. It trades about 0.02 of its potential returns per unit of risk. Calfrac Well Services is currently generating about 0.07 of returns per unit of risk over similar time horizon. 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	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Now Inc  vs.  Calfrac Well Services

Now Inc

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Now Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Now is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Calfrac Well Services

Risk-Adjusted Performance

Modest

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 unsteady technical and fundamental indicators, Calfrac Well may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Now and Calfrac Well

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

The idea behind Now Inc and Calfrac Well 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.

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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.