Correlation Between Noble Plc and GENERAL
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By analyzing existing cross correlation between Noble plc and GENERAL ELEC CAP, you can compare the effects of market volatilities on Noble Plc and GENERAL 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 Noble Plc with a short position of GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Noble Plc and GENERAL.
Diversification Opportunities for Noble Plc and GENERAL
Very good diversification
The 3 months correlation between Noble and GENERAL is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Noble plc and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP and Noble Plc 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 Noble plc are associated (or correlated) with GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of Noble Plc i.e., Noble Plc and GENERAL go up and down completely randomly.
Pair Corralation between Noble Plc and GENERAL
Allowing for the 90-day total investment horizon Noble plc is expected to generate 0.86 times more return on investment than GENERAL. However, Noble plc is 1.16 times less risky than GENERAL. It trades about 0.12 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about -0.44 per unit of risk. If you would invest 3,196 in Noble plc on August 28, 2024 and sell it today you would earn a total of 236.00 from holding Noble plc or generate 7.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 28.57% |
| Values | Daily Returns |
Noble plc vs. GENERAL ELEC CAP
Performance |
| Timeline |
| Noble plc |
| GENERAL ELEC CAP |
Noble Plc and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Noble Plc and GENERAL
The main advantage of trading using opposite Noble Plc and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Noble Plc position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Noble Plc vs. Nabors Industries | Noble Plc vs. Precision Drilling | Noble Plc vs. Seadrill Limited | Noble Plc vs. Patterson UTI Energy |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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