Correlation Between BORR DRILLING and CeoTronics
Can any of the company-specific risk be diversified away by investing in both BORR DRILLING and CeoTronics 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 CeoTronics 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 CeoTronics AG, you can compare the effects of market volatilities on BORR DRILLING and CeoTronics 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 CeoTronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BORR DRILLING and CeoTronics.
Diversification Opportunities for BORR DRILLING and CeoTronics
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BORR and CeoTronics is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding BORR DRILLING NEW and CeoTronics AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CeoTronics AG 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 CeoTronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CeoTronics AG has no effect on the direction of BORR DRILLING i.e., BORR DRILLING and CeoTronics go up and down completely randomly.
Pair Corralation between BORR DRILLING and CeoTronics
Assuming the 90 days horizon BORR DRILLING is expected to generate 4.73 times less return on investment than CeoTronics. In addition to that, BORR DRILLING is 1.32 times more volatile than CeoTronics AG. It trades about 0.01 of its total potential returns per unit of risk. CeoTronics AG is currently generating about 0.04 per unit of volatility. If you would invest 414.00 in CeoTronics AG on September 24, 2024 and sell it today you would earn a total of 171.00 from holding CeoTronics AG or generate 41.3% 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. CeoTronics AG
Performance |
| Timeline |
| BORR DRILLING NEW |
| CeoTronics AG |
BORR DRILLING and CeoTronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BORR DRILLING and CeoTronics
The main advantage of trading using opposite BORR DRILLING and CeoTronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BORR DRILLING position performs unexpectedly, CeoTronics 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 CeoTronics will offset losses from the drop in CeoTronics' long position.| BORR DRILLING vs. Sinopec Oilfield Service | BORR DRILLING vs. Helmerich Payne | BORR DRILLING vs. Patterson UTI Energy | BORR DRILLING vs. Nabors Industries |
| CeoTronics vs. PLAYTIKA HOLDING DL 01 | CeoTronics vs. PROSIEBENSAT1 MEDIADR4 | CeoTronics vs. Ubisoft Entertainment SA | CeoTronics vs. GigaMedia |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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