Correlation Between Nabors Industries and Victorias Secret
Can any of the company-specific risk be diversified away by investing in both Nabors Industries and Victorias Secret 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 Victorias Secret into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nabors Industries and Victorias Secret Co, you can compare the effects of market volatilities on Nabors Industries and Victorias Secret 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 Victorias Secret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nabors Industries and Victorias Secret.
Diversification Opportunities for Nabors Industries and Victorias Secret
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nabors and Victorias is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nabors Industries and Victorias Secret Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victorias Secret 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 Victorias Secret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victorias Secret has no effect on the direction of Nabors Industries i.e., Nabors Industries and Victorias Secret go up and down completely randomly.
Pair Corralation between Nabors Industries and Victorias Secret
Considering the 90-day investment horizon Nabors Industries is expected to under-perform the Victorias Secret. In addition to that, Nabors Industries is 1.26 times more volatile than Victorias Secret Co. It trades about 0.0 of its total potential returns per unit of risk. Victorias Secret Co is currently generating about 0.47 per unit of volatility. If you would invest 3,026 in Victorias Secret Co on September 1, 2024 and sell it today you would earn a total of 858.00 from holding Victorias Secret Co or generate 28.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nabors Industries vs. Victorias Secret Co
Performance |
| Timeline |
| Nabors Industries |
| Victorias Secret |
Nabors Industries and Victorias Secret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nabors Industries and Victorias Secret
The main advantage of trading using opposite Nabors Industries and Victorias Secret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nabors Industries position performs unexpectedly, Victorias Secret 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 Victorias Secret will offset losses from the drop in Victorias Secret's long position.| Nabors Industries vs. Borr Drilling | Nabors Industries vs. Patterson UTI Energy | Nabors Industries vs. Noble plc | Nabors Industries vs. Helmerich and Payne |
| Victorias Secret vs. Capri Holdings | Victorias Secret vs. Movado Group | Victorias Secret vs. Tapestry | Victorias Secret vs. Brilliant Earth 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |