Correlation Between Worley Parsons and CGG SA
Can any of the company-specific risk be diversified away by investing in both Worley Parsons 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 Worley Parsons and CGG SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Worley Parsons and CGG SA ADR, you can compare the effects of market volatilities on Worley Parsons 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 Worley Parsons with a short position of CGG SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Worley Parsons and CGG SA.
Diversification Opportunities for Worley Parsons and CGG SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Worley and CGG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Worley Parsons 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 Worley Parsons 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 Worley Parsons 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 Worley Parsons i.e., Worley Parsons and CGG SA go up and down completely randomly.
Pair Corralation between Worley Parsons and CGG SA
If you would invest (100.00) in CGG SA ADR on November 28, 2024 and sell it today you would earn a total of 100.00 from holding CGG SA ADR or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Worley Parsons vs. CGG SA ADR
Performance |
| Timeline |
| Worley Parsons |
| CGG SA ADR |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Worley Parsons and CGG SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Worley Parsons and CGG SA
The main advantage of trading using opposite Worley Parsons and CGG SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Worley Parsons 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.| Worley Parsons vs. Petrofac Ltd ADR | Worley Parsons vs. Saipem SpA | Worley Parsons vs. SMG Industries | Worley Parsons vs. Bri Chem Corp |
| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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