Correlation Between Schlumberger and ION Geophysical
Can any of the company-specific risk be diversified away by investing in both Schlumberger 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 Schlumberger and ION Geophysical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schlumberger NV and ION Geophysical, you can compare the effects of market volatilities on Schlumberger 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 Schlumberger with a short position of ION Geophysical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schlumberger and ION Geophysical.
Diversification Opportunities for Schlumberger and ION Geophysical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Schlumberger and ION is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Schlumberger NV and ION Geophysical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ION Geophysical and Schlumberger 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 Schlumberger 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 Schlumberger i.e., Schlumberger and ION Geophysical go up and down completely randomly.
Pair Corralation between Schlumberger and ION Geophysical
If you would invest 4,814 in Schlumberger NV on February 11, 2024 and sell it today you would earn a total of 36.00 from holding Schlumberger NV or generate 0.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Schlumberger NV vs. ION Geophysical
Performance |
| Timeline |
| Schlumberger NV |
| ION Geophysical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Schlumberger and ION Geophysical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schlumberger and ION Geophysical
The main advantage of trading using opposite Schlumberger and ION Geophysical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schlumberger 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.| Schlumberger vs. Now Inc | Schlumberger vs. Enerflex | Schlumberger vs. Ranger Energy Services | Schlumberger vs. ProPetro Holding Corp |
| ION Geophysical vs. Celsius Holdings | ION Geophysical vs. Grocery Outlet Holding | ION Geophysical vs. Advanced Micro Devices | ION Geophysical vs. Tyson Foods |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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