Correlation Between BORR DRILLING and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both BORR DRILLING and Lindblad Expeditions 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 Lindblad Expeditions 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 Lindblad Expeditions Holdings, you can compare the effects of market volatilities on BORR DRILLING and Lindblad Expeditions 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 Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of BORR DRILLING and Lindblad Expeditions.
Diversification Opportunities for BORR DRILLING and Lindblad Expeditions
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BORR and Lindblad is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding BORR DRILLING NEW and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions 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 Lindblad Expeditions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lindblad Expeditions has no effect on the direction of BORR DRILLING i.e., BORR DRILLING and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between BORR DRILLING and Lindblad Expeditions
Assuming the 90 days horizon BORR DRILLING NEW is expected to under-perform the Lindblad Expeditions. But the stock apears to be less risky and, when comparing its historical volatility, BORR DRILLING NEW is 2.07 times less risky than Lindblad Expeditions. The stock trades about -0.05 of its potential returns per unit of risk. The Lindblad Expeditions Holdings is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 850.00 in Lindblad Expeditions Holdings on September 2, 2024 and sell it today you would earn a total of 330.00 from holding Lindblad Expeditions Holdings or generate 38.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BORR DRILLING NEW vs. Lindblad Expeditions Holdings
Performance |
| Timeline |
| BORR DRILLING NEW |
| Lindblad Expeditions |
BORR DRILLING and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BORR DRILLING and Lindblad Expeditions
The main advantage of trading using opposite BORR DRILLING and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BORR DRILLING position performs unexpectedly, Lindblad Expeditions 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 Lindblad Expeditions will offset losses from the drop in Lindblad Expeditions' long position.| BORR DRILLING vs. SHELF DRILLING LTD | BORR DRILLING vs. Daldrup Shne Aktiengesellschaft | BORR DRILLING vs. Superior Plus Corp | BORR DRILLING vs. NMI Holdings |
| Lindblad Expeditions vs. Digilife Technologies Limited | Lindblad Expeditions vs. Carsales | Lindblad Expeditions vs. BORR DRILLING NEW | Lindblad Expeditions vs. BOS BETTER ONLINE |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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