Correlation Between BORR DRILLING and Siamgas
Can any of the company-specific risk be diversified away by investing in both BORR DRILLING and Siamgas 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 Siamgas 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 Siamgas And Petrochemicals, you can compare the effects of market volatilities on BORR DRILLING and Siamgas 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 Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of BORR DRILLING and Siamgas.
Diversification Opportunities for BORR DRILLING and Siamgas
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BORR and Siamgas is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding BORR DRILLING NEW and Siamgas And Petrochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siamgas And Petroche 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 Siamgas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siamgas And Petroche has no effect on the direction of BORR DRILLING i.e., BORR DRILLING and Siamgas go up and down completely randomly.
Pair Corralation between BORR DRILLING and Siamgas
Assuming the 90 days horizon BORR DRILLING NEW is expected to under-perform the Siamgas. In addition to that, BORR DRILLING is 1.57 times more volatile than Siamgas And Petrochemicals. It trades about -0.02 of its total potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.01 per unit of volatility. If you would invest 18.00 in Siamgas And Petrochemicals on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Siamgas And Petrochemicals or generate 0.0% 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. Siamgas And Petrochemicals
Performance |
| Timeline |
| BORR DRILLING NEW |
| Siamgas And Petroche |
BORR DRILLING and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BORR DRILLING and Siamgas
The main advantage of trading using opposite BORR DRILLING and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BORR DRILLING position performs unexpectedly, Siamgas 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 Siamgas will offset losses from the drop in Siamgas' long position.| BORR DRILLING vs. MAVEN WIRELESS SWEDEN | BORR DRILLING vs. Dairy Farm International | BORR DRILLING vs. CITY OFFICE REIT | BORR DRILLING vs. Tyson Foods |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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