Correlation Between BORR DRILLING and KEPPEL CORP
Can any of the company-specific risk be diversified away by investing in both BORR DRILLING and KEPPEL CORP 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 KEPPEL CORP 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 KEPPEL P , you can compare the effects of market volatilities on BORR DRILLING and KEPPEL CORP 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 KEPPEL CORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of BORR DRILLING and KEPPEL CORP.
Diversification Opportunities for BORR DRILLING and KEPPEL CORP
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BORR and KEPPEL is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding BORR DRILLING NEW and KEPPEL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEPPEL CORP 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 KEPPEL CORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEPPEL CORP has no effect on the direction of BORR DRILLING i.e., BORR DRILLING and KEPPEL CORP go up and down completely randomly.
Pair Corralation between BORR DRILLING and KEPPEL CORP
Assuming the 90 days horizon BORR DRILLING NEW is expected to under-perform the KEPPEL CORP. In addition to that, BORR DRILLING is 3.55 times more volatile than KEPPEL P . It trades about -0.14 of its total potential returns per unit of risk. KEPPEL P is currently generating about 0.18 per unit of volatility. If you would invest 423.00 in KEPPEL P on September 3, 2024 and sell it today you would earn a total of 48.00 from holding KEPPEL P or generate 11.35% 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. KEPPEL P
Performance |
| Timeline |
| BORR DRILLING NEW |
| KEPPEL CORP |
BORR DRILLING and KEPPEL CORP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BORR DRILLING and KEPPEL CORP
The main advantage of trading using opposite BORR DRILLING and KEPPEL CORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BORR DRILLING position performs unexpectedly, KEPPEL CORP 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 KEPPEL CORP will offset losses from the drop in KEPPEL CORP's long position.| BORR DRILLING vs. Patterson UTI Energy | BORR DRILLING vs. PRECISION DRILLING P | BORR DRILLING vs. SHELF DRILLING LTD | BORR DRILLING vs. Daldrup Shne Aktiengesellschaft |
| KEPPEL CORP vs. Major Drilling Group | KEPPEL CORP vs. BORR DRILLING NEW | KEPPEL CORP vs. SPORTING | KEPPEL CORP vs. DICKS Sporting Goods |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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