Correlation Between Greenway Technologies and CGG SA
Can any of the company-specific risk be diversified away by investing in both Greenway Technologies and CGG SA 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 Greenway Technologies and CGG SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenway Technologies and CGG SA ADR, you can compare the effects of market volatilities on Greenway Technologies and CGG SA 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 Greenway Technologies with a short position of CGG SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenway Technologies and CGG SA.
Diversification Opportunities for Greenway Technologies and CGG SA
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Greenway and CGG is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Greenway Technologies and CGG SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGG SA ADR and Greenway 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 Greenway Technologies are associated (or correlated) with CGG SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGG SA ADR has no effect on the direction of Greenway Technologies i.e., Greenway Technologies and CGG SA go up and down completely randomly.
Pair Corralation between Greenway Technologies and CGG SA
If you would invest 1.90 in Greenway Technologies on September 1, 2024 and sell it today you would earn a total of 0.51 from holding Greenway Technologies or generate 26.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Greenway Technologies vs. CGG SA ADR
Performance |
| Timeline |
| Greenway Technologies |
| CGG SA ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Greenway Technologies and CGG SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenway Technologies and CGG SA
The main advantage of trading using opposite Greenway Technologies and CGG SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenway Technologies position performs unexpectedly, CGG SA 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 CGG SA will offset losses from the drop in CGG SA's long position.| Greenway Technologies vs. Petroleo Brasileiro Petrobras | Greenway Technologies vs. Equinor ASA ADR | Greenway Technologies vs. Eni SpA ADR | Greenway Technologies vs. YPF Sociedad Anonima |
| CGG SA vs. Akastor ASA | CGG SA vs. Greenway Technologies | CGG SA vs. Trican Well Service | CGG SA vs. NCS Multistage 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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