Correlation Between TGS ASA and Expro Group
Can any of the company-specific risk be diversified away by investing in both TGS ASA and Expro Group 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 TGS ASA and Expro Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TGS ASA and Expro Group Holdings, you can compare the effects of market volatilities on TGS ASA and Expro Group 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 TGS ASA with a short position of Expro Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of TGS ASA and Expro Group.
Diversification Opportunities for TGS ASA and Expro Group
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TGS and Expro is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding TGS ASA and Expro Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expro Group Holdings and TGS ASA 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 TGS ASA are associated (or correlated) with Expro Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expro Group Holdings has no effect on the direction of TGS ASA i.e., TGS ASA and Expro Group go up and down completely randomly.
Pair Corralation between TGS ASA and Expro Group
Assuming the 90 days horizon TGS ASA is expected to generate 0.88 times more return on investment than Expro Group. However, TGS ASA is 1.14 times less risky than Expro Group. It trades about 0.02 of its potential returns per unit of risk. Expro Group Holdings is currently generating about -0.09 per unit of risk. If you would invest 944.00 in TGS ASA on September 3, 2024 and sell it today you would earn a total of 16.00 from holding TGS ASA or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TGS ASA vs. Expro Group Holdings
Performance |
| Timeline |
| TGS ASA |
| Expro Group Holdings |
TGS ASA and Expro Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TGS ASA and Expro Group
The main advantage of trading using opposite TGS ASA and Expro Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TGS ASA position performs unexpectedly, Expro Group 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 Expro Group will offset losses from the drop in Expro Group's long position.| TGS ASA vs. Oceaneering International | TGS ASA vs. Nine Energy Service | TGS ASA vs. Schlumberger NV | TGS ASA vs. Calfrac Well Services |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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