Correlation Between Core Laboratories and ION Geophysical
Can any of the company-specific risk be diversified away by investing in both Core Laboratories and ION Geophysical 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 Core Laboratories and ION Geophysical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Core Laboratories NV and ION Geophysical, you can compare the effects of market volatilities on Core Laboratories and ION Geophysical 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 Core Laboratories with a short position of ION Geophysical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Laboratories and ION Geophysical.
Diversification Opportunities for Core Laboratories and ION Geophysical
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Core and ION is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Core Laboratories NV and ION Geophysical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ION Geophysical and Core Laboratories 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 Core Laboratories NV are associated (or correlated) with ION Geophysical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ION Geophysical has no effect on the direction of Core Laboratories i.e., Core Laboratories and ION Geophysical go up and down completely randomly.
Pair Corralation between Core Laboratories and ION Geophysical
If you would invest 7.10 in ION Geophysical on February 12, 2024 and sell it today you would earn a total of 0.00 from holding ION Geophysical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.81% |
| Values | Daily Returns |
Core Laboratories NV vs. ION Geophysical
Performance |
| Timeline |
| Core Laboratories |
| ION Geophysical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Core Laboratories and ION Geophysical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Core Laboratories and ION Geophysical
The main advantage of trading using opposite Core Laboratories and ION Geophysical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Laboratories position performs unexpectedly, ION Geophysical 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 ION Geophysical will offset losses from the drop in ION Geophysical's long position.| Core Laboratories vs. Baker Hughes Co | Core Laboratories vs. NOV Inc | Core Laboratories vs. Weatherford International PLC | Core Laboratories vs. Tenaris SA ADR |
| ION Geophysical vs. Ziff Davis | ION Geophysical vs. Arrow Financial | ION Geophysical vs. Grupo Televisa SAB | ION Geophysical vs. Artisan Partners Asset |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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