Correlation Between Haitong Securities and BORR DRILLING
Can any of the company-specific risk be diversified away by investing in both Haitong Securities and BORR DRILLING 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 Haitong Securities and BORR DRILLING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haitong Securities Co and BORR DRILLING NEW, you can compare the effects of market volatilities on Haitong Securities and BORR DRILLING 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 Haitong Securities with a short position of BORR DRILLING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haitong Securities and BORR DRILLING.
Diversification Opportunities for Haitong Securities and BORR DRILLING
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Haitong and BORR is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Haitong Securities Co and BORR DRILLING NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BORR DRILLING NEW and Haitong Securities 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 Haitong Securities Co are associated (or correlated) with BORR DRILLING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BORR DRILLING NEW has no effect on the direction of Haitong Securities i.e., Haitong Securities and BORR DRILLING go up and down completely randomly.
Pair Corralation between Haitong Securities and BORR DRILLING
Assuming the 90 days horizon Haitong Securities Co is expected to generate 0.47 times more return on investment than BORR DRILLING. However, Haitong Securities Co is 2.15 times less risky than BORR DRILLING. It trades about 0.09 of its potential returns per unit of risk. BORR DRILLING NEW is currently generating about -0.01 per unit of risk. If you would invest 82.00 in Haitong Securities Co on September 13, 2024 and sell it today you would earn a total of 3.00 from holding Haitong Securities Co or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Haitong Securities Co vs. BORR DRILLING NEW
Performance |
| Timeline |
| Haitong Securities |
| BORR DRILLING NEW |
Haitong Securities and BORR DRILLING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haitong Securities and BORR DRILLING
The main advantage of trading using opposite Haitong Securities and BORR DRILLING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haitong Securities position performs unexpectedly, BORR DRILLING 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 BORR DRILLING will offset losses from the drop in BORR DRILLING's long position.| Haitong Securities vs. Superior Plus Corp | Haitong Securities vs. SIVERS SEMICONDUCTORS AB | Haitong Securities vs. CHINA HUARONG ENERHD 50 | Haitong Securities vs. NORDIC HALIBUT AS |
| BORR DRILLING vs. Nabors Industries | BORR DRILLING vs. PRECISION DRILLING P | BORR DRILLING vs. SHELF DRILLING LTD | BORR DRILLING vs. Daldrup Shne Aktiengesellschaft |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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