Correlation Between CGG SA and Ranger Energy
Can any of the company-specific risk be diversified away by investing in both CGG SA and Ranger Energy 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 Ranger Energy 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 Ranger Energy Services, you can compare the effects of market volatilities on CGG SA and Ranger Energy 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 Ranger Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CGG SA and Ranger Energy.
Diversification Opportunities for CGG SA and Ranger Energy
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CGG and Ranger is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding CGG SA ADR and Ranger Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ranger Energy Services 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 Ranger Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ranger Energy Services has no effect on the direction of CGG SA i.e., CGG SA and Ranger Energy go up and down completely randomly.
Pair Corralation between CGG SA and Ranger Energy
If you would invest 957.00 in Ranger Energy Services on September 2, 2024 and sell it today you would earn a total of 693.00 from holding Ranger Energy Services or generate 72.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
CGG SA ADR vs. Ranger Energy Services
Performance |
| Timeline |
| CGG SA ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ranger Energy Services |
CGG SA and Ranger Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CGG SA and Ranger Energy
The main advantage of trading using opposite CGG SA and Ranger Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CGG SA position performs unexpectedly, Ranger Energy 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 Ranger Energy will offset losses from the drop in Ranger Energy'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 |
| Ranger Energy vs. Newpark Resources | Ranger Energy vs. ProPetro Holding Corp | Ranger Energy vs. RPC Inc | Ranger Energy 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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