Correlation Between CGG SA and NCS Multistage
Can any of the company-specific risk be diversified away by investing in both CGG SA and NCS Multistage 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 NCS Multistage 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 NCS Multistage Holdings, you can compare the effects of market volatilities on CGG SA and NCS Multistage 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 NCS Multistage. Check out your portfolio center. Please also check ongoing floating volatility patterns of CGG SA and NCS Multistage.
Diversification Opportunities for CGG SA and NCS Multistage
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CGG and NCS is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding CGG SA ADR and NCS Multistage Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NCS Multistage Holdings 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 NCS Multistage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NCS Multistage Holdings has no effect on the direction of CGG SA i.e., CGG SA and NCS Multistage go up and down completely randomly.
Pair Corralation between CGG SA and NCS Multistage
If you would invest 1,775 in NCS Multistage Holdings on September 2, 2024 and sell it today you would earn a total of 319.00 from holding NCS Multistage Holdings or generate 17.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.8% |
| Values | Daily Returns |
CGG SA ADR vs. NCS Multistage Holdings
Performance |
| Timeline |
| CGG SA ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NCS Multistage Holdings |
CGG SA and NCS Multistage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CGG SA and NCS Multistage
The main advantage of trading using opposite CGG SA and NCS Multistage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGG SA position performs unexpectedly, NCS Multistage 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 NCS Multistage will offset losses from the drop in NCS Multistage'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 |
| NCS Multistage vs. Bri Chem Corp | NCS Multistage vs. NXT Energy Solutions | NCS Multistage vs. Bristow Group | NCS Multistage vs. Natural Gas Services |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |