Correlation Between Geospace Technologies and Forum Energy
Can any of the company-specific risk be diversified away by investing in both Geospace Technologies and Forum 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 Geospace Technologies and Forum Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geospace Technologies and Forum Energy Technologies, you can compare the effects of market volatilities on Geospace Technologies and Forum 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 Geospace Technologies with a short position of Forum Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geospace Technologies and Forum Energy.
Diversification Opportunities for Geospace Technologies and Forum Energy
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Geospace and Forum is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Geospace Technologies and Forum Energy Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forum Energy Technologies and Geospace Technologies 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 Geospace Technologies are associated (or correlated) with Forum Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forum Energy Technologies has no effect on the direction of Geospace Technologies i.e., Geospace Technologies and Forum Energy go up and down completely randomly.
Pair Corralation between Geospace Technologies and Forum Energy
Given the investment horizon of 90 days Geospace Technologies is expected to generate 1.28 times more return on investment than Forum Energy. However, Geospace Technologies is 1.28 times more volatile than Forum Energy Technologies. It trades about 0.08 of its potential returns per unit of risk. Forum Energy Technologies is currently generating about -0.04 per unit of risk. If you would invest 440.00 in Geospace Technologies on August 23, 2024 and sell it today you would earn a total of 922.00 from holding Geospace Technologies or generate 209.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geospace Technologies vs. Forum Energy Technologies
Performance |
| Timeline |
| Geospace Technologies |
| Forum Energy Technologies |
Geospace Technologies and Forum Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geospace Technologies and Forum Energy
The main advantage of trading using opposite Geospace Technologies and Forum Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geospace Technologies position performs unexpectedly, Forum 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 Forum Energy will offset losses from the drop in Forum Energy's long position.| Geospace Technologies vs. Enerflex | Geospace Technologies vs. Oil States International | Geospace Technologies vs. Newpark Resources | Geospace Technologies vs. MRC Global |
| Forum Energy vs. Natural Gas Services | Forum Energy vs. Enerflex | Forum Energy vs. Now Inc | Forum Energy vs. Newpark Resources |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |