Correlation Between BORR DRILLING and Genfit SA
Can any of the company-specific risk be diversified away by investing in both BORR DRILLING and Genfit SA 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 Genfit SA 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 Genfit SA, you can compare the effects of market volatilities on BORR DRILLING and Genfit SA 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 Genfit SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BORR DRILLING and Genfit SA.
Diversification Opportunities for BORR DRILLING and Genfit SA
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BORR and Genfit is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding BORR DRILLING NEW and Genfit SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit SA 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 Genfit SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit SA has no effect on the direction of BORR DRILLING i.e., BORR DRILLING and Genfit SA go up and down completely randomly.
Pair Corralation between BORR DRILLING and Genfit SA
Assuming the 90 days horizon BORR DRILLING NEW is expected to generate 2.49 times more return on investment than Genfit SA. However, BORR DRILLING is 2.49 times more volatile than Genfit SA. It trades about 0.06 of its potential returns per unit of risk. Genfit SA is currently generating about -0.45 per unit of risk. If you would invest 364.00 in BORR DRILLING NEW on September 20, 2024 and sell it today you would earn a total of 13.00 from holding BORR DRILLING NEW or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BORR DRILLING NEW vs. Genfit SA
Performance |
| Timeline |
| BORR DRILLING NEW |
| Genfit SA |
BORR DRILLING and Genfit SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BORR DRILLING and Genfit SA
The main advantage of trading using opposite BORR DRILLING and Genfit SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BORR DRILLING position performs unexpectedly, Genfit SA 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 Genfit SA will offset losses from the drop in Genfit SA's long position.| BORR DRILLING vs. KRISPY KREME DL 01 | BORR DRILLING vs. Quaker Chemical | BORR DRILLING vs. Universal Display | BORR DRILLING vs. Hemisphere Energy Corp |
| Genfit SA vs. BORR DRILLING NEW | Genfit SA vs. Brockhaus Capital Management | Genfit SA vs. FIREWEED METALS P | Genfit SA vs. Major Drilling Group |
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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