Correlation Between ALBIS LEASING and BORR DRILLING
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING 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 ALBIS LEASING and BORR DRILLING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ALBIS LEASING AG and BORR DRILLING NEW, you can compare the effects of market volatilities on ALBIS LEASING 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 ALBIS LEASING with a short position of BORR DRILLING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and BORR DRILLING.
Diversification Opportunities for ALBIS LEASING and BORR DRILLING
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ALBIS and BORR is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG 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 ALBIS LEASING 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 ALBIS LEASING AG 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 ALBIS LEASING i.e., ALBIS LEASING and BORR DRILLING go up and down completely randomly.
Pair Corralation between ALBIS LEASING and BORR DRILLING
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 0.16 times more return on investment than BORR DRILLING. However, ALBIS LEASING AG is 6.13 times less risky than BORR DRILLING. It trades about -0.02 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 278.00 in ALBIS LEASING AG on October 30, 2024 and sell it today you would lose (2.00) from holding ALBIS LEASING AG or give up 0.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. BORR DRILLING NEW
Performance |
| Timeline |
| ALBIS LEASING AG |
| BORR DRILLING NEW |
ALBIS LEASING and BORR DRILLING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and BORR DRILLING
The main advantage of trading using opposite ALBIS LEASING and BORR DRILLING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING 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.| ALBIS LEASING vs. Sunny Optical Technology | ALBIS LEASING vs. GAZTRTECHNIUADR15EO01 | ALBIS LEASING vs. PKSHA TECHNOLOGY INC | ALBIS LEASING vs. Firan Technology Group |
| BORR DRILLING vs. SAN MIGUEL BREWERY | BORR DRILLING vs. Monster Beverage Corp | BORR DRILLING vs. DISTRICT METALS | BORR DRILLING vs. MAGNUM MINING EXP |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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