Correlation Between CSI Compressco and Geospace Technologies
Can any of the company-specific risk be diversified away by investing in both CSI Compressco and Geospace Technologies 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 CSI Compressco and Geospace Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSI Compressco LP and Geospace Technologies, you can compare the effects of market volatilities on CSI Compressco and Geospace Technologies 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 CSI Compressco with a short position of Geospace Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSI Compressco and Geospace Technologies.
Diversification Opportunities for CSI Compressco and Geospace Technologies
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between CSI and Geospace is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding CSI Compressco LP and Geospace Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geospace Technologies and CSI Compressco 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 CSI Compressco LP are associated (or correlated) with Geospace Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geospace Technologies has no effect on the direction of CSI Compressco i.e., CSI Compressco and Geospace Technologies go up and down completely randomly.
Pair Corralation between CSI Compressco and Geospace Technologies
If you would invest 1,125 in Geospace Technologies on August 24, 2024 and sell it today you would earn a total of 237.00 from holding Geospace Technologies or generate 21.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
CSI Compressco LP vs. Geospace Technologies
Performance |
| Timeline |
| CSI Compressco LP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Geospace Technologies |
CSI Compressco and Geospace Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSI Compressco and Geospace Technologies
The main advantage of trading using opposite CSI Compressco and Geospace Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSI Compressco position performs unexpectedly, Geospace Technologies 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 Geospace Technologies will offset losses from the drop in Geospace Technologies' long position.| CSI Compressco vs. Geospace Technologies | CSI Compressco vs. MRC Global | CSI Compressco vs. North American Construction | CSI Compressco vs. Natural Gas Services |
| Geospace Technologies vs. Enerflex | Geospace Technologies vs. Oil States International | Geospace Technologies vs. Newpark Resources | Geospace Technologies vs. MRC Global |
Check out your portfolio center.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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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