Correlation Between Seadrill and KIMCO
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By analyzing existing cross correlation between Seadrill Limited and KIMCO RLTY P, you can compare the effects of market volatilities on Seadrill and KIMCO 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 KIMCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seadrill and KIMCO.
Diversification Opportunities for Seadrill and KIMCO
Significant diversification
The 3 months correlation between Seadrill and KIMCO is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Seadrill Limited and KIMCO RLTY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMCO RLTY P 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 KIMCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMCO RLTY P has no effect on the direction of Seadrill i.e., Seadrill and KIMCO go up and down completely randomly.
Pair Corralation between Seadrill and KIMCO
Given the investment horizon of 90 days Seadrill Limited is expected to generate 3.26 times more return on investment than KIMCO. However, Seadrill is 3.26 times more volatile than KIMCO RLTY P. It trades about 0.01 of its potential returns per unit of risk. KIMCO RLTY P is currently generating about -0.23 per unit of risk. If you would invest 3,994 in Seadrill Limited on September 12, 2024 and sell it today you would earn a total of 3.50 from holding Seadrill Limited or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Seadrill Limited vs. KIMCO RLTY P
Performance |
| Timeline |
| Seadrill Limited |
| KIMCO RLTY P |
Seadrill and KIMCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seadrill and KIMCO
The main advantage of trading using opposite Seadrill and KIMCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seadrill position performs unexpectedly, KIMCO 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 KIMCO will offset losses from the drop in KIMCO's long position.| Seadrill vs. Nabors Industries | Seadrill vs. Borr Drilling | Seadrill vs. Transocean | Seadrill vs. Helmerich and Payne |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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