Correlation Between Geospace Technologies and CJ Energy
Can any of the company-specific risk be diversified away by investing in both Geospace Technologies and CJ Energy 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 Geospace Technologies and CJ Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geospace Technologies and CJ Energy Services, you can compare the effects of market volatilities on Geospace Technologies and CJ Energy 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 Geospace Technologies with a short position of CJ Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geospace Technologies and CJ Energy.
Diversification Opportunities for Geospace Technologies and CJ Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Geospace and CJ Energy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Geospace Technologies and CJ Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CJ Energy Services and Geospace Technologies 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 Geospace Technologies are associated (or correlated) with CJ Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CJ Energy Services has no effect on the direction of Geospace Technologies i.e., Geospace Technologies and CJ Energy go up and down completely randomly.
Pair Corralation between Geospace Technologies and CJ Energy
If you would invest (100.00) in CJ Energy Services on January 26, 2024 and sell it today you would earn a total of 100.00 from holding CJ Energy Services 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 |
Geospace Technologies vs. CJ Energy Services
Performance |
| Timeline |
| Geospace Technologies |
| CJ Energy Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Geospace Technologies and CJ Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geospace Technologies and CJ Energy
The main advantage of trading using opposite Geospace Technologies and CJ Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geospace Technologies position performs unexpectedly, CJ Energy 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 CJ Energy will offset losses from the drop in CJ Energy's long position.| Geospace Technologies vs. Enerflex | Geospace Technologies vs. Oil States International | Geospace Technologies vs. Newpark Resources | Geospace Technologies vs. MRC Global |
| CJ Energy vs. The Coca Cola | CJ Energy vs. ZK International Group | CJ Energy vs. Cementos Pacasmayo SAA | CJ Energy vs. BRC Inc |
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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