Correlation Between Nabors Industries and Able View
Can any of the company-specific risk be diversified away by investing in both Nabors Industries and Able View 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 Nabors Industries and Able View into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nabors Industries and Able View Global, you can compare the effects of market volatilities on Nabors Industries and Able View 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 Nabors Industries with a short position of Able View. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nabors Industries and Able View.
Diversification Opportunities for Nabors Industries and Able View
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nabors and Able is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Nabors Industries and Able View Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Able View Global and Nabors Industries 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 Nabors Industries are associated (or correlated) with Able View. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Able View Global has no effect on the direction of Nabors Industries i.e., Nabors Industries and Able View go up and down completely randomly.
Pair Corralation between Nabors Industries and Able View
Considering the 90-day investment horizon Nabors Industries is expected to under-perform the Able View. But the stock apears to be less risky and, when comparing its historical volatility, Nabors Industries is 3.24 times less risky than Able View. The stock trades about -0.1 of its potential returns per unit of risk. The Able View Global is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 77.00 in Able View Global on November 3, 2024 and sell it today you would earn a total of 28.00 from holding Able View Global or generate 36.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nabors Industries vs. Able View Global
Performance |
| Timeline |
| Nabors Industries |
| Able View Global |
Nabors Industries and Able View Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nabors Industries and Able View
The main advantage of trading using opposite Nabors Industries and Able View positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nabors Industries position performs unexpectedly, Able View 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 Able View will offset losses from the drop in Able View's long position.| Nabors Industries vs. Helmerich and Payne | Nabors Industries vs. Precision Drilling | Nabors Industries vs. Seadrill Limited | Nabors Industries vs. Borr Drilling |
| Able View vs. Centessa Pharmaceuticals PLC | Able View vs. Valneva SE ADR | Able View vs. Analog Devices | Able View vs. Senmiao Technology |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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