Correlation Between BORR DRILLING and ManpowerGroup
Can any of the company-specific risk be diversified away by investing in both BORR DRILLING and ManpowerGroup 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 ManpowerGroup 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 ManpowerGroup, you can compare the effects of market volatilities on BORR DRILLING and ManpowerGroup 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 ManpowerGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of BORR DRILLING and ManpowerGroup.
Diversification Opportunities for BORR DRILLING and ManpowerGroup
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BORR and ManpowerGroup is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding BORR DRILLING NEW and ManpowerGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ManpowerGroup 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 ManpowerGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ManpowerGroup has no effect on the direction of BORR DRILLING i.e., BORR DRILLING and ManpowerGroup go up and down completely randomly.
Pair Corralation between BORR DRILLING and ManpowerGroup
Assuming the 90 days horizon BORR DRILLING NEW is expected to generate 1.95 times more return on investment than ManpowerGroup. However, BORR DRILLING is 1.95 times more volatile than ManpowerGroup. It trades about 0.01 of its potential returns per unit of risk. ManpowerGroup is currently generating about -0.02 per unit of risk. If you would invest 379.00 in BORR DRILLING NEW on September 12, 2024 and sell it today you would lose (35.00) from holding BORR DRILLING NEW or give up 9.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BORR DRILLING NEW vs. ManpowerGroup
Performance |
| Timeline |
| BORR DRILLING NEW |
| ManpowerGroup |
BORR DRILLING and ManpowerGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BORR DRILLING and ManpowerGroup
The main advantage of trading using opposite BORR DRILLING and ManpowerGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BORR DRILLING position performs unexpectedly, ManpowerGroup 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 ManpowerGroup will offset losses from the drop in ManpowerGroup's long position.| BORR DRILLING vs. Nabors Industries | BORR DRILLING vs. PRECISION DRILLING P | BORR DRILLING vs. SHELF DRILLING LTD | BORR DRILLING vs. Daldrup Shne Aktiengesellschaft |
| ManpowerGroup vs. JD SPORTS FASH | ManpowerGroup vs. BORR DRILLING NEW | ManpowerGroup vs. Gaztransport Technigaz SA | ManpowerGroup vs. Algonquin Power Utilities |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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