Correlation Between CGG SA and Mccoy Global
Can any of the company-specific risk be diversified away by investing in both CGG SA and Mccoy 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 CGG SA and Mccoy Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CGG SA ADR and Mccoy Global, you can compare the effects of market volatilities on CGG SA and Mccoy 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 CGG SA with a short position of Mccoy Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of CGG SA and Mccoy Global.
Diversification Opportunities for CGG SA and Mccoy Global
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CGG and Mccoy is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding CGG SA ADR and Mccoy Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mccoy Global and CGG SA 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 CGG SA ADR are associated (or correlated) with Mccoy Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mccoy Global has no effect on the direction of CGG SA i.e., CGG SA and Mccoy Global go up and down completely randomly.
Pair Corralation between CGG SA and Mccoy Global
If you would invest 172.00 in Mccoy Global on August 28, 2024 and sell it today you would earn a total of 37.00 from holding Mccoy Global or generate 21.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 2.33% |
| Values | Daily Returns |
CGG SA ADR vs. Mccoy Global
Performance |
| Timeline |
| CGG SA ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mccoy Global |
CGG SA and Mccoy Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CGG SA and Mccoy Global
The main advantage of trading using opposite CGG SA and Mccoy Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGG SA position performs unexpectedly, Mccoy 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 Mccoy Global will offset losses from the drop in Mccoy Global's long position.| CGG SA vs. Akastor ASA | CGG SA vs. Greenway Technologies | CGG SA vs. Trican Well Service | CGG SA vs. NCS Multistage Holdings |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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