Correlation Between Nabors Industries and BZLNZ
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By analyzing existing cross correlation between Nabors Industries and BZLNZ 2 21 FEB 25, you can compare the effects of market volatilities on Nabors Industries and BZLNZ 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 BZLNZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nabors Industries and BZLNZ.
Diversification Opportunities for Nabors Industries and BZLNZ
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nabors and BZLNZ is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Nabors Industries and BZLNZ 2 21 FEB 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BZLNZ 2 21 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 BZLNZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BZLNZ 2 21 has no effect on the direction of Nabors Industries i.e., Nabors Industries and BZLNZ go up and down completely randomly.
Pair Corralation between Nabors Industries and BZLNZ
Considering the 90-day investment horizon Nabors Industries is expected to generate 6.35 times more return on investment than BZLNZ. However, Nabors Industries is 6.35 times more volatile than BZLNZ 2 21 FEB 25. It trades about 0.03 of its potential returns per unit of risk. BZLNZ 2 21 FEB 25 is currently generating about -0.31 per unit of risk. If you would invest 7,287 in Nabors Industries on August 29, 2024 and sell it today you would earn a total of 59.00 from holding Nabors Industries or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 36.36% |
| Values | Daily Returns |
Nabors Industries vs. BZLNZ 2 21 FEB 25
Performance |
| Timeline |
| Nabors Industries |
| BZLNZ 2 21 |
Nabors Industries and BZLNZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nabors Industries and BZLNZ
The main advantage of trading using opposite Nabors Industries and BZLNZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nabors Industries position performs unexpectedly, BZLNZ 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 BZLNZ will offset losses from the drop in BZLNZ's long position.| Nabors Industries vs. Precision Drilling | Nabors Industries vs. Seadrill Limited | Nabors Industries vs. Patterson UTI Energy | Nabors Industries vs. Borr Drilling |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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