Correlation Between Expro Group and Atlas Energy

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

By analyzing existing cross correlation between Expro Group Holdings and Atlas Energy Solutions, you can compare the effects of market volatilities on Expro Group and Atlas Energy 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 Expro Group with a short position of Atlas Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expro Group and Atlas Energy.

Diversification Opportunities for Expro Group and Atlas Energy

0.48

Correlation Coefficient

Expro Group  Atlas Energy

Very weak diversification

The 3 months correlation between Expro and Atlas is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Expro Group Holdings and Atlas Energy Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Energy Solutions and Expro Group 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 Expro Group Holdings are associated (or correlated) with Atlas Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Energy Solutions has no effect on the direction of Expro Group i.e., Expro Group and Atlas Energy go up and down completely randomly.

Pair Corralation between Expro Group and Atlas Energy

Given the investment horizon of 90 days Expro Group Holdings is expected to generate 1.63 times more return on investment than Atlas Energy. However, Expro Group is 1.63 times more volatile than Atlas Energy Solutions. It trades about 0.11 of its potential returns per unit of risk. Atlas Energy Solutions is currently generating about -0.04 per unit of risk. If you would invest  798.00  in Expro Group Holdings on May 3, 2025 and sell it today you would earn a total of  280.00  from holding Expro Group Holdings or generate 35.09% return on investment over 90 days.

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

Expro Group Holdings  vs.  Atlas Energy Solutions

Expro Group Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Expro Group Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Expro Group displayed solid returns over the last few months and may actually be approaching a breakup point.

Atlas Energy Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atlas Energy Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Expro Group and Atlas Energy

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

The idea behind Expro Group Holdings and Atlas Energy Solutions 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.