Correlation Between Dawson Geophysical and Expro Group

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

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

Diversification Opportunities for Dawson Geophysical and Expro Group

0.3

Correlation Coefficient

Dawson Geophysical  Expro Group

Weak diversification

The 3 months correlation between Dawson and Expro is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Dawson Geophysical 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 Dawson Geophysical 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 Dawson Geophysical 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 Dawson Geophysical i.e., Dawson Geophysical and Expro Group go up and down completely randomly.

Pair Corralation between Dawson Geophysical and Expro Group

Given the investment horizon of 90 days Dawson Geophysical is expected to generate 2.97 times more return on investment than Expro Group. However, Dawson Geophysical is 2.97 times more volatile than Expro Group Holdings. It trades about 0.08 of its potential returns per unit of risk. Expro Group Holdings is currently generating about 0.12 per unit of risk. If you would invest  113.00  in Dawson Geophysical on May 7, 2025 and sell it today you would earn a total of  28.00  from holding Dawson Geophysical or generate 24.78% return on investment over 90 days.

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

Dawson Geophysical  vs.  Expro Group Holdings

Dawson Geophysical

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Dawson Geophysical are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Dawson Geophysical displayed solid returns over the last few months and may actually be approaching a breakup point.

Expro Group Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Expro Group Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Expro Group displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dawson Geophysical and Expro Group

The main advantage of trading using opposite Dawson Geophysical and Expro Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawson Geophysical 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 Dawson Geophysical 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.