Correlation Between Civeo Corp and Geo

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

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

Diversification Opportunities for Civeo Corp and Geo

-0.87

Correlation Coefficient

Civeo Corp  Geo

Pay attention - limited upside

The 3 months correlation between Civeo and Geo is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Civeo Corp and Geo Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geo Group and Civeo Corp 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 Civeo Corp are associated (or correlated) with Geo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geo Group has no effect on the direction of Civeo Corp i.e., Civeo Corp and Geo go up and down completely randomly.

Pair Corralation between Civeo Corp and Geo

Given the investment horizon of 90 days Civeo Corp is expected to under-perform the Geo. But the stock apears to be less risky and, when comparing its historical volatility, Civeo Corp is 1.35 times less risky than Geo. The stock trades about -0.01 of its potential returns per unit of risk. The Geo Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,121  in Geo Group on October 9, 2024 and sell it today you would earn a total of  1,787  from holding Geo Group or generate 159.41% return on investment over 90 days.

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

Civeo Corp  vs.  Geo Group

Civeo Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Civeo Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Geo Group

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Geo Group are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting technical and fundamental indicators, Geo displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Civeo Corp and Geo

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

The idea behind Civeo Corp and Geo Group 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.