Correlation Between STANLN and Borr Drilling
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By analyzing existing cross correlation between STANLN 6301 09 JAN 29 and Borr Drilling, you can compare the effects of market volatilities on STANLN and Borr Drilling 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 STANLN with a short position of Borr Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of STANLN and Borr Drilling.
Diversification Opportunities for STANLN and Borr Drilling
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between STANLN and Borr is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding STANLN 6301 09 JAN 29 and Borr Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Borr Drilling and STANLN 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 STANLN 6301 09 JAN 29 are associated (or correlated) with Borr Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Borr Drilling has no effect on the direction of STANLN i.e., STANLN and Borr Drilling go up and down completely randomly.
Pair Corralation between STANLN and Borr Drilling
Assuming the 90 days trading horizon STANLN 6301 09 JAN 29 is expected to generate 0.09 times more return on investment than Borr Drilling. However, STANLN 6301 09 JAN 29 is 10.7 times less risky than Borr Drilling. It trades about 0.01 of its potential returns per unit of risk. Borr Drilling is currently generating about -0.07 per unit of risk. If you would invest 10,240 in STANLN 6301 09 JAN 29 on October 25, 2024 and sell it today you would earn a total of 31.00 from holding STANLN 6301 09 JAN 29 or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 40.69% |
| Values | Daily Returns |
STANLN 6301 09 JAN 29 vs. Borr Drilling
Performance |
| Timeline |
| STANLN 6301 09 |
| Borr Drilling |
STANLN and Borr Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STANLN and Borr Drilling
The main advantage of trading using opposite STANLN and Borr Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STANLN position performs unexpectedly, Borr Drilling 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 Borr Drilling will offset losses from the drop in Borr Drilling's long position.| STANLN vs. Summit Therapeutics PLC | STANLN vs. Aldel Financial II | STANLN vs. Cardinal Health | STANLN vs. Hurco Companies |
| Borr Drilling vs. Noble plc | Borr Drilling vs. Patterson UTI Energy | Borr Drilling vs. Nabors Industries | Borr Drilling vs. Seadrill Limited |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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