Transocean Correlations

RIG Stock

USD 4.34 0.11 2.60%

The current 90-days correlation between Transocean and Helmerich and Payne is 0.58 (i.e., Very weak diversification). The correlation of Transocean is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Transocean Correlation With Market

Weak diversification

The correlation between Transocean and DJI is 0.3 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Transocean and DJI in the same portfolio, assuming nothing else is changed.

Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Transocean. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.

For more detail on how to invest in Transocean Stock please use our How to Invest in Transocean guide.

Moving together with Transocean Stock

0.72	NE	Noble plc	Pair Corr
0.77	PDS	Precision Drilling	Pair Corr
0.78	PTEN	Patterson UTI Energy	Pair Corr
0.85	SDRL	Seadrill Limited Earnings Call This Week	Pair Corr
0.66	E	Eni SpA ADR	Pair Corr
0.71	NR	Newpark Resources	Pair Corr
0.75	SD	SandRidge Energy	Pair Corr
0.77	VTLE	Vital Energy	Pair Corr
0.62	VTOL	Bristow Group	Pair Corr

Moving against Transocean Stock

0.44	ENLC	EnLink Midstream LLC	Pair Corr
0.33	IMPPP	Imperial Petroleum	Pair Corr

Related Correlations Analysis

	HP	NE	NBR	PDS	PTEN	SDRL	BORR	E
HP		-0.13	0.84	-0.16	0.17	-0.09	-0.46	-0.06	HP
NE	-0.13		0.17	0.74	0.67	0.69	0.68	0.58	NE
NBR	0.84	0.17		0.27	0.53	0.28	-0.13	0.25	NBR
PDS	-0.16	0.74	0.27		0.88	0.82	0.65	0.62	PDS
PTEN	0.17	0.67	0.53	0.88		0.75	0.53	0.61	PTEN
SDRL	-0.09	0.69	0.28	0.82	0.75		0.41	0.48	SDRL
BORR	-0.46	0.68	-0.13	0.65	0.53	0.41		0.82	BORR
E	-0.06	0.58	0.25	0.62	0.61	0.48	0.82		E
	HP	NE	NBR	PDS	PTEN	SDRL	BORR	E

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

PTEN	+ 0.88	PDS
NBR	+ 0.84	HP
SDRL	+ 0.82	PDS
E	+ 0.82	BORR
SDRL	+ 0.75	PTEN
PDS	+ 0.74	NE

High negative correlations

BORR	- 0.46	HP
PDS	- 0.16	HP
BORR	- 0.13	NBR
NE	- 0.13	HP
SDRL	- 0.09	HP
E	- 0.06	HP

Risk-Adjusted Indicators

There is a big difference between Transocean Stock performing well and Transocean Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Transocean's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
HP	1.92	(0.04)	0.05	2.47	(1.95)	3.69	(4.82)	12.16
NE	1.84	(0.23)	(0.04)	0.00	0.00	3.99	(3.50)	14.22
NBR	3.20	(0.18)	(0.05)	0.00	0.00	6.76	(5.77)	15.91
PDS	1.83	(0.15)	(0.05)	0.00	0.00	3.53	(4.25)	11.18
PTEN	2.12	(0.28)	(0.07)	0.00	0.00	3.50	(4.36)	14.10
SDRL	1.89	(0.16)	(0.05)	0.00	0.00	3.83	(3.21)	13.44
BORR	2.44	(0.79)	(0.35)	0.00	0.00	4.04	(6.51)	14.51
E	0.96	(0.12)	(0.68)	0.00	0.00	1.63	(2.34)	5.15

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