Correlation Between BORR DRILLING and CHINA OIL
Can any of the company-specific risk be diversified away by investing in both BORR DRILLING and CHINA OIL 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 CHINA OIL 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 CHINA OIL AND, you can compare the effects of market volatilities on BORR DRILLING and CHINA OIL 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 CHINA OIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of BORR DRILLING and CHINA OIL.
Diversification Opportunities for BORR DRILLING and CHINA OIL
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between BORR and CHINA is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding BORR DRILLING NEW and CHINA OIL AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA OIL AND 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 CHINA OIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA OIL AND has no effect on the direction of BORR DRILLING i.e., BORR DRILLING and CHINA OIL go up and down completely randomly.
Pair Corralation between BORR DRILLING and CHINA OIL
Assuming the 90 days horizon BORR DRILLING NEW is expected to under-perform the CHINA OIL. In addition to that, BORR DRILLING is 5.68 times more volatile than CHINA OIL AND. It trades about -0.17 of its total potential returns per unit of risk. CHINA OIL AND is currently generating about -0.15 per unit of volatility. If you would invest 2.25 in CHINA OIL AND on November 30, 2024 and sell it today you would lose (0.10) from holding CHINA OIL AND or give up 4.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
BORR DRILLING NEW vs. CHINA OIL AND
Performance |
| Timeline |
| BORR DRILLING NEW |
| CHINA OIL AND |
BORR DRILLING and CHINA OIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BORR DRILLING and CHINA OIL
The main advantage of trading using opposite BORR DRILLING and CHINA OIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BORR DRILLING position performs unexpectedly, CHINA OIL 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 CHINA OIL will offset losses from the drop in CHINA OIL's long position.| BORR DRILLING vs. Fast Retailing Co | BORR DRILLING vs. NAKED WINES PLC | BORR DRILLING vs. CARSALESCOM | BORR DRILLING vs. COSTCO WHOLESALE CDR |
| CHINA OIL vs. NAGOYA RAILROAD | CHINA OIL vs. Yunnan Water Investment | CHINA OIL vs. COPLAND ROAD CAPITAL | CHINA OIL vs. MidCap Financial 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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