Correlation Between Borr Drilling and Greenshift Corp
Can any of the company-specific risk be diversified away by investing in both Borr Drilling and Greenshift Corp 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 Greenshift Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Borr Drilling and Greenshift Corp, you can compare the effects of market volatilities on Borr Drilling and Greenshift Corp 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 Greenshift Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borr Drilling and Greenshift Corp.
Diversification Opportunities for Borr Drilling and Greenshift Corp
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Borr and Greenshift is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Borr Drilling and Greenshift Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenshift Corp 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 are associated (or correlated) with Greenshift Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenshift Corp has no effect on the direction of Borr Drilling i.e., Borr Drilling and Greenshift Corp go up and down completely randomly.
Pair Corralation between Borr Drilling and Greenshift Corp
Given the investment horizon of 90 days Borr Drilling is expected to under-perform the Greenshift Corp. But the stock apears to be less risky and, when comparing its historical volatility, Borr Drilling is 4.98 times less risky than Greenshift Corp. The stock trades about -0.04 of its potential returns per unit of risk. The Greenshift Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4.69 in Greenshift Corp on September 3, 2024 and sell it today you would lose (1.89) from holding Greenshift Corp or give up 40.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Borr Drilling vs. Greenshift Corp
Performance |
| Timeline |
| Borr Drilling |
| Greenshift Corp |
Borr Drilling and Greenshift Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borr Drilling and Greenshift Corp
The main advantage of trading using opposite Borr Drilling and Greenshift Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borr Drilling position performs unexpectedly, Greenshift Corp 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 Greenshift Corp will offset losses from the drop in Greenshift Corp's long position.| Borr Drilling vs. Noble plc | Borr Drilling vs. Patterson UTI Energy | Borr Drilling vs. Nabors Industries | Borr Drilling vs. Seadrill Limited |
| Greenshift Corp vs. Seadrill Limited | Greenshift Corp vs. Noble plc | Greenshift Corp vs. Borr Drilling | Greenshift Corp vs. SCOR PK |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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