Correlation Between Expro Group and MRC Global

Can any of the company-specific risk be diversified away by investing in both Expro Group and MRC Global 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 MRC Global 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 MRC Global, you can compare the effects of market volatilities on Expro Group and MRC Global 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 MRC Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expro Group and MRC Global.

Diversification Opportunities for Expro Group and MRC Global

0.72

Correlation Coefficient

Expro Group  MRC Global

Poor diversification

The 3 months correlation between Expro and MRC is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Expro Group Holdings and MRC Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MRC Global 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 MRC Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MRC Global has no effect on the direction of Expro Group i.e., Expro Group and MRC Global go up and down completely randomly.

Pair Corralation between Expro Group and MRC Global

Given the investment horizon of 90 days Expro Group is expected to generate 3.06 times less return on investment than MRC Global. But when comparing it to its historical volatility, Expro Group Holdings is 1.04 times less risky than MRC Global. It trades about 0.14 of its potential returns per unit of risk. MRC Global is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest  1,019  in MRC Global on February 12, 2025 and sell it today you would earn a total of  284.00  from holding MRC Global or generate 27.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.24%
Values	Daily Returns

Expro Group Holdings  vs.  MRC Global

Expro Group Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Expro Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in June 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

MRC Global

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MRC Global are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, MRC Global is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Expro Group and MRC Global

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

The idea behind Expro Group Holdings and MRC Global 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.