Correlation Between Seadrill and Placer Creek
Can any of the company-specific risk be diversified away by investing in both Seadrill and Placer Creek 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 Seadrill and Placer Creek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seadrill Limited and Placer Creek Mining, you can compare the effects of market volatilities on Seadrill and Placer Creek 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 Seadrill with a short position of Placer Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seadrill and Placer Creek.
Diversification Opportunities for Seadrill and Placer Creek
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Seadrill and Placer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Seadrill Limited and Placer Creek Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Placer Creek Mining and Seadrill 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 Seadrill Limited are associated (or correlated) with Placer Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Placer Creek Mining has no effect on the direction of Seadrill i.e., Seadrill and Placer Creek go up and down completely randomly.
Pair Corralation between Seadrill and Placer Creek
If you would invest 0.01 in Placer Creek Mining on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Placer Creek Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seadrill Limited vs. Placer Creek Mining
Performance |
| Timeline |
| Seadrill Limited |
| Placer Creek Mining |
Seadrill and Placer Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seadrill and Placer Creek
The main advantage of trading using opposite Seadrill and Placer Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seadrill position performs unexpectedly, Placer Creek 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 Placer Creek will offset losses from the drop in Placer Creek's long position.| Seadrill vs. Nabors Industries | Seadrill vs. Borr Drilling | Seadrill vs. Patterson UTI Energy | Seadrill vs. Noble plc |
| Placer Creek vs. Chiba Bank Ltd | Placer Creek vs. Exchange Bank | Placer Creek vs. Snap On | Placer Creek vs. Encore Capital 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |