Correlation Between Geospace Technologies and Expro Group

Can any of the company-specific risk be diversified away by investing in both Geospace Technologies and Expro Group 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 Expro Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Geospace Technologies and Expro Group Holdings, you can compare the effects of market volatilities on Geospace Technologies and Expro Group 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 Expro Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geospace Technologies and Expro Group.

Diversification Opportunities for Geospace Technologies and Expro Group

-0.73

Correlation Coefficient

Geospace Technologies  Expro Group

Pay attention - limited upside

The 3 months correlation between Geospace and Expro is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Geospace Technologies and Expro Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expro Group Holdings 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 Expro Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expro Group Holdings has no effect on the direction of Geospace Technologies i.e., Geospace Technologies and Expro Group go up and down completely randomly.

Pair Corralation between Geospace Technologies and Expro Group

Given the investment horizon of 90 days Geospace Technologies is expected to generate 1.11 times more return on investment than Expro Group. However, Geospace Technologies is 1.11 times more volatile than Expro Group Holdings. It trades about 0.06 of its potential returns per unit of risk. Expro Group Holdings is currently generating about 0.06 per unit of risk. If you would invest  474.00  in Geospace Technologies on March 21, 2024 and sell it today you would earn a total of  442.00  from holding Geospace Technologies or generate 93.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Geospace Technologies  vs.  Expro Group Holdings

Geospace Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Geospace Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in July 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Expro Group Holdings

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Expro Group Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Expro Group may actually be approaching a critical reversion point that can send shares even higher in July 2024.

Pair Trading with Geospace Technologies and Expro Group

The main advantage of trading using opposite Geospace Technologies and Expro Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geospace Technologies position performs unexpectedly, Expro Group 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 Expro Group will offset losses from the drop in Expro Group's long position.

The idea behind Geospace Technologies and Expro Group Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.