Correlation Between BORR DRILLING and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both BORR DRILLING and Uber Technologies 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 Uber Technologies 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 Uber Technologies, you can compare the effects of market volatilities on BORR DRILLING and Uber Technologies 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 Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BORR DRILLING and Uber Technologies.
Diversification Opportunities for BORR DRILLING and Uber Technologies
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BORR and Uber is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding BORR DRILLING NEW and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of BORR DRILLING i.e., BORR DRILLING and Uber Technologies go up and down completely randomly.
Pair Corralation between BORR DRILLING and Uber Technologies
Assuming the 90 days horizon BORR DRILLING is expected to generate 2.06 times less return on investment than Uber Technologies. In addition to that, BORR DRILLING is 2.3 times more volatile than Uber Technologies. It trades about 0.07 of its total potential returns per unit of risk. Uber Technologies is currently generating about 0.32 per unit of volatility. If you would invest 5,734 in Uber Technologies on October 14, 2024 and sell it today you would earn a total of 656.00 from holding Uber Technologies or generate 11.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BORR DRILLING NEW vs. Uber Technologies
Performance |
| Timeline |
| BORR DRILLING NEW |
| Uber Technologies |
BORR DRILLING and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BORR DRILLING and Uber Technologies
The main advantage of trading using opposite BORR DRILLING and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BORR DRILLING position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.| BORR DRILLING vs. VIENNA INSURANCE GR | BORR DRILLING vs. Sanyo Chemical Industries | BORR DRILLING vs. QBE Insurance Group | BORR DRILLING vs. PTT Global Chemical |
| Uber Technologies vs. BORR DRILLING NEW | Uber Technologies vs. SWISS WATER DECAFFCOFFEE | Uber Technologies vs. Zijin Mining Group | Uber Technologies vs. INTER CARS SA |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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