Correlation Between CSI Compressco and Natural Gas
Can any of the company-specific risk be diversified away by investing in both CSI Compressco and Natural Gas 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 Natural Gas 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 Natural Gas Services, you can compare the effects of market volatilities on CSI Compressco and Natural Gas 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 Natural Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSI Compressco and Natural Gas.
Diversification Opportunities for CSI Compressco and Natural Gas
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CSI and Natural is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding CSI Compressco LP and Natural Gas Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Gas Services 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 Natural Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Gas Services has no effect on the direction of CSI Compressco i.e., CSI Compressco and Natural Gas go up and down completely randomly.
Pair Corralation between CSI Compressco and Natural Gas
If you would invest 1,993 in Natural Gas Services on August 27, 2024 and sell it today you would earn a total of 795.00 from holding Natural Gas Services or generate 39.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
CSI Compressco LP vs. Natural Gas Services
Performance |
| Timeline |
| CSI Compressco LP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Natural Gas Services |
CSI Compressco and Natural Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSI Compressco and Natural Gas
The main advantage of trading using opposite CSI Compressco and Natural Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSI Compressco position performs unexpectedly, Natural Gas 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 Natural Gas will offset losses from the drop in Natural Gas' long position.| CSI Compressco vs. Geospace Technologies | CSI Compressco vs. MRC Global | CSI Compressco vs. North American Construction | CSI Compressco vs. Natural Gas Services |
| Natural Gas vs. ProPetro Holding Corp | Natural Gas vs. RPC Inc | Natural Gas vs. MRC Global | Natural Gas vs. Expro Group Holdings |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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