Correlation Between Calfrac Well and Storage Vault

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

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

Diversification Opportunities for Calfrac Well and Storage Vault

0.2

Correlation Coefficient

Calfrac Well  Storage Vault

Modest diversification

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

Pair Corralation between Calfrac Well and Storage Vault

Assuming the 90 days trading horizon Calfrac Well is expected to generate 3.75 times less return on investment than Storage Vault. But when comparing it to its historical volatility, Calfrac Well Services is 1.04 times less risky than Storage Vault. It trades about 0.03 of its potential returns per unit of risk. Storage Vault Canada is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  368.00  in Storage Vault Canada on April 22, 2025 and sell it today you would earn a total of  44.00  from holding Storage Vault Canada or generate 11.96% return on investment over 90 days.

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

Calfrac Well Services  vs.  Storage Vault Canada

Calfrac Well Services

Risk-Adjusted Performance

Weak

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

Storage Vault Canada

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Storage Vault Canada are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, Storage Vault may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Calfrac Well and Storage Vault

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

The idea behind Calfrac Well Services and Storage Vault Canada 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.