Correlation Between Argeo AS and TGS NOPEC

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

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

Diversification Opportunities for Argeo AS and TGS NOPEC

-0.19

Correlation Coefficient

Argeo AS  TGS NOPEC

Good diversification

The 3 months correlation between Argeo and TGS is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Argeo AS and TGS NOPEC Geophysical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TGS NOPEC Geophysical and Argeo AS 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 Argeo AS are associated (or correlated) with TGS NOPEC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TGS NOPEC Geophysical has no effect on the direction of Argeo AS i.e., Argeo AS and TGS NOPEC go up and down completely randomly.

Pair Corralation between Argeo AS and TGS NOPEC

Assuming the 90 days trading horizon Argeo AS is expected to under-perform the TGS NOPEC. In addition to that, Argeo AS is 5.92 times more volatile than TGS NOPEC Geophysical. It trades about -0.13 of its total potential returns per unit of risk. TGS NOPEC Geophysical is currently generating about 0.0 per unit of volatility. If you would invest  7,554  in TGS NOPEC Geophysical on April 23, 2025 and sell it today you would lose (154.00) from holding TGS NOPEC Geophysical or give up 2.04% of portfolio value over 90 days.

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

Argeo AS  vs.  TGS NOPEC Geophysical

Argeo AS

Risk-Adjusted Performance

Very Weak

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

TGS NOPEC Geophysical

Risk-Adjusted Performance

Very Weak

Over the last 90 days TGS NOPEC Geophysical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, TGS NOPEC is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Argeo AS and TGS NOPEC

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

The idea behind Argeo AS and TGS NOPEC Geophysical 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.