Correlation Between BORR DRILLING and Corporate Travel
Can any of the company-specific risk be diversified away by investing in both BORR DRILLING and Corporate Travel 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 Corporate Travel 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 Corporate Travel Management, you can compare the effects of market volatilities on BORR DRILLING and Corporate Travel 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 Corporate Travel. Check out your portfolio center. Please also check ongoing floating volatility patterns of BORR DRILLING and Corporate Travel.
Diversification Opportunities for BORR DRILLING and Corporate Travel
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BORR and Corporate is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding BORR DRILLING NEW and Corporate Travel Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporate Travel Man 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 Corporate Travel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporate Travel Man has no effect on the direction of BORR DRILLING i.e., BORR DRILLING and Corporate Travel go up and down completely randomly.
Pair Corralation between BORR DRILLING and Corporate Travel
Assuming the 90 days horizon BORR DRILLING NEW is expected to generate 1.91 times more return on investment than Corporate Travel. However, BORR DRILLING is 1.91 times more volatile than Corporate Travel Management. It trades about 0.13 of its potential returns per unit of risk. Corporate Travel Management is currently generating about -0.19 per unit of risk. If you would invest 355.00 in BORR DRILLING NEW on October 11, 2024 and sell it today you would earn a total of 33.00 from holding BORR DRILLING NEW or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BORR DRILLING NEW vs. Corporate Travel Management
Performance |
| Timeline |
| BORR DRILLING NEW |
| Corporate Travel Man |
BORR DRILLING and Corporate Travel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BORR DRILLING and Corporate Travel
The main advantage of trading using opposite BORR DRILLING and Corporate Travel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BORR DRILLING position performs unexpectedly, Corporate Travel 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 Corporate Travel will offset losses from the drop in Corporate Travel's long position.| BORR DRILLING vs. CITY OFFICE REIT | BORR DRILLING vs. CENTURIA OFFICE REIT | BORR DRILLING vs. SPECTRAL MEDICAL | BORR DRILLING vs. OBSERVE MEDICAL ASA |
| Corporate Travel vs. BORR DRILLING NEW | Corporate Travel vs. STMICROELECTRONICS | Corporate Travel vs. PennyMac Mortgage Investment | Corporate Travel vs. KIMBALL ELECTRONICS |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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