Correlation Between BORR DRILLING and SQUIRREL MEDIA
Can any of the company-specific risk be diversified away by investing in both BORR DRILLING and SQUIRREL MEDIA 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 BORR DRILLING and SQUIRREL MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BORR DRILLING NEW and SQUIRREL MEDIA SA, you can compare the effects of market volatilities on BORR DRILLING and SQUIRREL MEDIA 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 BORR DRILLING with a short position of SQUIRREL MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BORR DRILLING and SQUIRREL MEDIA.
Diversification Opportunities for BORR DRILLING and SQUIRREL MEDIA
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BORR and SQUIRREL is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding BORR DRILLING NEW and SQUIRREL MEDIA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SQUIRREL MEDIA SA and BORR DRILLING 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 BORR DRILLING NEW are associated (or correlated) with SQUIRREL MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SQUIRREL MEDIA SA has no effect on the direction of BORR DRILLING i.e., BORR DRILLING and SQUIRREL MEDIA go up and down completely randomly.
Pair Corralation between BORR DRILLING and SQUIRREL MEDIA
Assuming the 90 days horizon BORR DRILLING NEW is expected to under-perform the SQUIRREL MEDIA. In addition to that, BORR DRILLING is 1.8 times more volatile than SQUIRREL MEDIA SA. It trades about -0.01 of its total potential returns per unit of risk. SQUIRREL MEDIA SA is currently generating about 0.25 per unit of volatility. If you would invest 118.00 in SQUIRREL MEDIA SA on October 29, 2024 and sell it today you would earn a total of 16.00 from holding SQUIRREL MEDIA SA or generate 13.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BORR DRILLING NEW vs. SQUIRREL MEDIA SA
Performance |
| Timeline |
| BORR DRILLING NEW |
| SQUIRREL MEDIA SA |
BORR DRILLING and SQUIRREL MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BORR DRILLING and SQUIRREL MEDIA
The main advantage of trading using opposite BORR DRILLING and SQUIRREL MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BORR DRILLING position performs unexpectedly, SQUIRREL MEDIA 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 SQUIRREL MEDIA will offset losses from the drop in SQUIRREL MEDIA's long position.| BORR DRILLING vs. CHIBA BANK | BORR DRILLING vs. SUN LIFE FINANCIAL | BORR DRILLING vs. Erste Group Bank | BORR DRILLING vs. S E BANKEN A |
| SQUIRREL MEDIA vs. ULTRA CLEAN HLDGS | SQUIRREL MEDIA vs. Keck Seng Investments | SQUIRREL MEDIA vs. JLF INVESTMENT | SQUIRREL MEDIA vs. MGIC INVESTMENT |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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