Correlation Between Pulse Seismic and Trican Well

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

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

Diversification Opportunities for Pulse Seismic and Trican Well

0.08

Correlation Coefficient

Pulse Seismic  Trican Well

Significant diversification

The 3 months correlation between Pulse and Trican is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Pulse Seismic and Trican Well Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trican Well Service and Pulse Seismic 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 Pulse Seismic are associated (or correlated) with Trican Well. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trican Well Service has no effect on the direction of Pulse Seismic i.e., Pulse Seismic and Trican Well go up and down completely randomly.

Pair Corralation between Pulse Seismic and Trican Well

Assuming the 90 days trading horizon Pulse Seismic is expected to generate 1.39 times more return on investment than Trican Well. However, Pulse Seismic is 1.39 times more volatile than Trican Well Service. It trades about 0.03 of its potential returns per unit of risk. Trican Well Service is currently generating about -0.01 per unit of risk. If you would invest  325.00  in Pulse Seismic on July 22, 2025 and sell it today you would earn a total of  9.00  from holding Pulse Seismic or generate 2.77% return on investment over 90 days.

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

Pulse Seismic  vs.  Trican Well Service

Pulse Seismic

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Pulse Seismic are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Pulse Seismic is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Trican Well Service

Risk-Adjusted Performance

Weakest

Over the last 90 days Trican Well Service has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Trican Well is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Pulse Seismic and Trican Well

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

The idea behind Pulse Seismic and Trican Well Service 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.