Correlation Between Ranger Energy and CGG SA
Can any of the company-specific risk be diversified away by investing in both Ranger Energy 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 Ranger Energy and CGG SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ranger Energy Services and CGG SA ADR, you can compare the effects of market volatilities on Ranger Energy 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 Ranger Energy with a short position of CGG SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ranger Energy and CGG SA.
Diversification Opportunities for Ranger Energy and CGG SA
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ranger and CGG is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ranger Energy Services 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 Ranger 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 Ranger Energy Services 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 Ranger Energy i.e., Ranger Energy and CGG SA go up and down completely randomly.
Pair Corralation between Ranger Energy and CGG SA
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 |
Ranger Energy Services vs. CGG SA ADR
Performance |
| Timeline |
| Ranger Energy Services |
| CGG SA ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ranger Energy and CGG SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ranger Energy and CGG SA
The main advantage of trading using opposite Ranger Energy and CGG SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ranger Energy 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.| Ranger Energy vs. Newpark Resources | Ranger Energy vs. ProPetro Holding Corp | Ranger Energy vs. RPC Inc | Ranger Energy vs. MRC Global |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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