Correlation Between BORR DRILLING and Singapore Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both BORR DRILLING and Singapore Telecommunicatio 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 Singapore Telecommunicatio 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 Singapore Telecommunications Limited, you can compare the effects of market volatilities on BORR DRILLING and Singapore Telecommunicatio 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 Singapore Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of BORR DRILLING and Singapore Telecommunicatio.
Diversification Opportunities for BORR DRILLING and Singapore Telecommunicatio
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BORR and Singapore is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding BORR DRILLING NEW and Singapore Telecommunications L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Telecommunicatio 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 Singapore Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Telecommunicatio has no effect on the direction of BORR DRILLING i.e., BORR DRILLING and Singapore Telecommunicatio go up and down completely randomly.
Pair Corralation between BORR DRILLING and Singapore Telecommunicatio
Assuming the 90 days horizon BORR DRILLING NEW is expected to under-perform the Singapore Telecommunicatio. In addition to that, BORR DRILLING is 2.18 times more volatile than Singapore Telecommunications Limited. It trades about -0.03 of its total potential returns per unit of risk. Singapore Telecommunications Limited is currently generating about 0.06 per unit of volatility. If you would invest 214.00 in Singapore Telecommunications Limited on September 5, 2024 and sell it today you would earn a total of 5.00 from holding Singapore Telecommunications Limited or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BORR DRILLING NEW vs. Singapore Telecommunications L
Performance |
| Timeline |
| BORR DRILLING NEW |
| Singapore Telecommunicatio |
BORR DRILLING and Singapore Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BORR DRILLING and Singapore Telecommunicatio
The main advantage of trading using opposite BORR DRILLING and Singapore Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BORR DRILLING position performs unexpectedly, Singapore Telecommunicatio 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 Singapore Telecommunicatio will offset losses from the drop in Singapore Telecommunicatio's long position.| BORR DRILLING vs. Sabra Health Care | BORR DRILLING vs. YOOMA WELLNESS INC | BORR DRILLING vs. Cardinal Health | BORR DRILLING vs. Evolution Mining Limited |
| Singapore Telecommunicatio vs. TROPHY GAMES DEV | Singapore Telecommunicatio vs. CI GAMES SA | Singapore Telecommunicatio vs. Major Drilling Group | Singapore Telecommunicatio vs. BORR DRILLING NEW |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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