Correlation Between Geospace Technologies and TGS ASA

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

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

Diversification Opportunities for Geospace Technologies and TGS ASA

-0.27

Correlation Coefficient

Geospace Technologies  TGS ASA

Very good diversification

The 3 months correlation between Geospace and TGS is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Geospace Technologies and TGS ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TGS ASA 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 TGS ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TGS ASA has no effect on the direction of Geospace Technologies i.e., Geospace Technologies and TGS ASA go up and down completely randomly.

Pair Corralation between Geospace Technologies and TGS ASA

Given the investment horizon of 90 days Geospace Technologies is expected to generate 1.22 times more return on investment than TGS ASA. However, Geospace Technologies is 1.22 times more volatile than TGS ASA. It trades about 0.05 of its potential returns per unit of risk. TGS ASA is currently generating about -0.03 per unit of risk. If you would invest  909.00  in Geospace Technologies on May 21, 2025 and sell it today you would earn a total of  802.00  from holding Geospace Technologies or generate 88.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	43.12%
Values	Daily Returns

Geospace Technologies  vs.  TGS ASA

Geospace Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Geospace Technologies are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Geospace Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

TGS ASA

Risk-Adjusted Performance

Weakest

Over the last 90 days TGS ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Geospace Technologies and TGS ASA

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

The idea behind Geospace Technologies and TGS ASA 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.