Correlation Between Ranger Energy and Core Laboratories

Can any of the company-specific risk be diversified away by investing in both Ranger Energy and Core Laboratories 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 Ranger Energy and Core Laboratories into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ranger Energy Services and Core Laboratories NV, you can compare the effects of market volatilities on Ranger Energy and Core Laboratories 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 Ranger Energy with a short position of Core Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ranger Energy and Core Laboratories.

Diversification Opportunities for Ranger Energy and Core Laboratories

0.74

Correlation Coefficient

Ranger Energy  Core Laboratories

Poor diversification

The 3 months correlation between Ranger and Core is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ranger Energy Services and Core Laboratories NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Laboratories and Ranger Energy 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 Ranger Energy Services are associated (or correlated) with Core Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Laboratories has no effect on the direction of Ranger Energy i.e., Ranger Energy and Core Laboratories go up and down completely randomly.

Pair Corralation between Ranger Energy and Core Laboratories

Given the investment horizon of 90 days Ranger Energy is expected to generate 1.76 times less return on investment than Core Laboratories. But when comparing it to its historical volatility, Ranger Energy Services is 1.1 times less risky than Core Laboratories. It trades about 0.03 of its potential returns per unit of risk. Core Laboratories NV is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,185  in Core Laboratories NV on April 25, 2025 and sell it today you would earn a total of  77.00  from holding Core Laboratories NV or generate 6.5% return on investment over 90 days.

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

Ranger Energy Services  vs.  Core Laboratories NV

Ranger Energy Services

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ranger Energy Services are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, Ranger Energy is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Core Laboratories

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Core Laboratories NV are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak essential indicators, Core Laboratories may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Ranger Energy and Core Laboratories

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

The idea behind Ranger Energy Services and Core Laboratories NV 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.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..