Correlation Between Flowco Holdings and Core Laboratories

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

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

Diversification Opportunities for Flowco Holdings and Core Laboratories

0.52

Correlation Coefficient

Flowco Holdings  Core Laboratories

Very weak diversification

The 3 months correlation between Flowco and Core is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Flowco Holdings and Core Laboratories NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Laboratories and Flowco Holdings 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 Flowco Holdings are associated (or correlated) with Core Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Laboratories has no effect on the direction of Flowco Holdings i.e., Flowco Holdings and Core Laboratories go up and down completely randomly.

Pair Corralation between Flowco Holdings and Core Laboratories

Given the investment horizon of 90 days Flowco Holdings is expected to under-perform the Core Laboratories. But the stock apears to be less risky and, when comparing its historical volatility, Flowco Holdings is 1.25 times less risky than Core Laboratories. The stock trades about -0.07 of its potential returns per unit of risk. The Core Laboratories NV is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,225  in Core Laboratories NV on June 11, 2025 and sell it today you would earn a total of  16.00  from holding Core Laboratories NV or generate 1.31% return on investment over 90 days.

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

Flowco Holdings  vs.  Core Laboratories NV

Flowco Holdings

Risk-Adjusted Performance

Weakest

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

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 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong essential indicators, Core Laboratories is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Flowco Holdings and Core Laboratories

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

The idea behind Flowco Holdings and Core Laboratories NV 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.