Correlation Between Expro Group and Geospace Technologies
Can any of the company-specific risk be diversified away by investing in both Expro Group 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 Expro Group and Geospace Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expro Group Holdings and Geospace Technologies, you can compare the effects of market volatilities on Expro Group 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 Expro Group with a short position of Geospace Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expro Group and Geospace Technologies.
Diversification Opportunities for Expro Group and Geospace Technologies
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Expro and Geospace is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Expro Group Holdings and Geospace Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geospace Technologies and Expro Group 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 Expro Group Holdings 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 Expro Group i.e., Expro Group and Geospace Technologies go up and down completely randomly.
Pair Corralation between Expro Group and Geospace Technologies
Given the investment horizon of 90 days Expro Group Holdings is expected to generate 1.29 times more return on investment than Geospace Technologies. However, Expro Group is 1.29 times more volatile than Geospace Technologies. It trades about 0.02 of its potential returns per unit of risk. Geospace Technologies is currently generating about -0.31 per unit of risk. If you would invest 1,275 in Expro Group Holdings on November 4, 2024 and sell it today you would earn a total of 6.00 from holding Expro Group Holdings or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expro Group Holdings vs. Geospace Technologies
Performance |
| Timeline |
| Expro Group Holdings |
| Geospace Technologies |
Expro Group and Geospace Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expro Group and Geospace Technologies
The main advantage of trading using opposite Expro Group and Geospace Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expro Group 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.| Expro Group vs. ChampionX | Expro Group vs. Ranger Energy Services | Expro Group vs. Cactus Inc | Expro Group vs. MRC Global |
| Geospace Technologies vs. Enerflex | Geospace Technologies vs. Oil States International | Geospace Technologies vs. MRC Global | Geospace Technologies vs. North American Construction |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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