Correlation Between BORR DRILLING and Pampa Energa
Can any of the company-specific risk be diversified away by investing in both BORR DRILLING and Pampa Energa 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 Pampa Energa 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 Pampa Energa SA, you can compare the effects of market volatilities on BORR DRILLING and Pampa Energa 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 Pampa Energa. Check out your portfolio center. Please also check ongoing floating volatility patterns of BORR DRILLING and Pampa Energa.
Diversification Opportunities for BORR DRILLING and Pampa Energa
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BORR and Pampa is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding BORR DRILLING NEW and Pampa Energa SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pampa Energa 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 Pampa Energa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pampa Energa SA has no effect on the direction of BORR DRILLING i.e., BORR DRILLING and Pampa Energa go up and down completely randomly.
Pair Corralation between BORR DRILLING and Pampa Energa
Assuming the 90 days horizon BORR DRILLING NEW is expected to under-perform the Pampa Energa. In addition to that, BORR DRILLING is 1.79 times more volatile than Pampa Energa SA. It trades about -0.1 of its total potential returns per unit of risk. Pampa Energa SA is currently generating about 0.51 per unit of volatility. If you would invest 6,100 in Pampa Energa SA on August 29, 2024 and sell it today you would earn a total of 1,850 from holding Pampa Energa SA or generate 30.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BORR DRILLING NEW vs. Pampa Energa SA
Performance |
| Timeline |
| BORR DRILLING NEW |
| Pampa Energa SA |
BORR DRILLING and Pampa Energa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BORR DRILLING and Pampa Energa
The main advantage of trading using opposite BORR DRILLING and Pampa Energa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BORR DRILLING position performs unexpectedly, Pampa Energa 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 Pampa Energa will offset losses from the drop in Pampa Energa's long position.| BORR DRILLING vs. PRECISION DRILLING P | BORR DRILLING vs. SHELF DRILLING LTD | BORR DRILLING vs. Superior Plus Corp | BORR DRILLING vs. SIVERS SEMICONDUCTORS AB |
| Pampa Energa vs. Computer And Technologies | Pampa Energa vs. DXC Technology Co | Pampa Energa vs. KOOL2PLAY SA ZY | Pampa Energa vs. JD SPORTS FASH |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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