Correlation Between Koil Energy and Geospace Technologies
Can any of the company-specific risk be diversified away by investing in both Koil Energy and Geospace Technologies 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 Koil Energy and Geospace Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koil Energy Solutions and Geospace Technologies, you can compare the effects of market volatilities on Koil Energy and Geospace Technologies 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 Koil Energy with a short position of Geospace Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koil Energy and Geospace Technologies.
Diversification Opportunities for Koil Energy and Geospace Technologies
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Koil and Geospace is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Koil Energy Solutions and Geospace Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geospace Technologies and Koil Energy 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 Koil Energy Solutions are associated (or correlated) with Geospace Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geospace Technologies has no effect on the direction of Koil Energy i.e., Koil Energy and Geospace Technologies go up and down completely randomly.
Pair Corralation between Koil Energy and Geospace Technologies
Given the investment horizon of 90 days Koil Energy Solutions is expected to generate 1.0 times more return on investment than Geospace Technologies. However, Koil Energy Solutions is 1.0 times less risky than Geospace Technologies. It trades about 0.21 of its potential returns per unit of risk. Geospace Technologies is currently generating about -0.03 per unit of risk. If you would invest 152.00 in Koil Energy Solutions on September 4, 2024 and sell it today you would earn a total of 36.00 from holding Koil Energy Solutions or generate 23.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Koil Energy Solutions vs. Geospace Technologies
Performance |
| Timeline |
| Koil Energy Solutions |
| Geospace Technologies |
Koil Energy and Geospace Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koil Energy and Geospace Technologies
The main advantage of trading using opposite Koil Energy and Geospace Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koil Energy position performs unexpectedly, Geospace Technologies 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 Geospace Technologies will offset losses from the drop in Geospace Technologies' long position.| Koil Energy vs. Expro Group Holdings | Koil Energy vs. ChampionX | Koil Energy vs. Ranger Energy Services | Koil Energy vs. Cactus Inc |
| Geospace Technologies vs. Enerflex | Geospace Technologies vs. Oil States International | Geospace Technologies vs. Newpark Resources | Geospace Technologies 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |