Correlation Between Flowserve and Primoris Services

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

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

Diversification Opportunities for Flowserve and Primoris Services

-0.39

Correlation Coefficient

Flowserve  Primoris Services

Very good diversification

The 3 months correlation between Flowserve and Primoris is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Flowserve and Primoris Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primoris Services and Flowserve 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 Flowserve are associated (or correlated) with Primoris Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primoris Services has no effect on the direction of Flowserve i.e., Flowserve and Primoris Services go up and down completely randomly.

Pair Corralation between Flowserve and Primoris Services

Considering the 90-day investment horizon Flowserve is expected to generate 1.52 times more return on investment than Primoris Services. However, Flowserve is 1.52 times more volatile than Primoris Services. It trades about 0.11 of its potential returns per unit of risk. Primoris Services is currently generating about 0.05 per unit of risk. If you would invest  5,644  in Flowserve on September 11, 2025 and sell it today you would earn a total of  1,602  from holding Flowserve or generate 28.38% return on investment over 90 days.

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

Flowserve  vs.  Primoris Services

Flowserve

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Flowserve are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain essential indicators, Flowserve unveiled solid returns over the last few months and may actually be approaching a breakup point.

Primoris Services

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Primoris Services are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady forward indicators, Primoris Services may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Flowserve and Primoris Services

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

The idea behind Flowserve and Primoris Services 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.