Correlation Between Lery Seafood and BORR DRILLING
Can any of the company-specific risk be diversified away by investing in both Lery Seafood and BORR DRILLING 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 Lery Seafood and BORR DRILLING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lery Seafood Group and BORR DRILLING NEW, you can compare the effects of market volatilities on Lery Seafood 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 Lery Seafood with a short position of BORR DRILLING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and BORR DRILLING.
Diversification Opportunities for Lery Seafood and BORR DRILLING
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lery and BORR is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group and BORR DRILLING NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BORR DRILLING NEW and Lery Seafood 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 Lery Seafood Group 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 NEW has no effect on the direction of Lery Seafood i.e., Lery Seafood and BORR DRILLING go up and down completely randomly.
Pair Corralation between Lery Seafood and BORR DRILLING
Assuming the 90 days horizon Lery Seafood Group is expected to generate 0.28 times more return on investment than BORR DRILLING. However, Lery Seafood Group is 3.58 times less risky than BORR DRILLING. It trades about 0.36 of its potential returns per unit of risk. BORR DRILLING NEW is currently generating about -0.01 per unit of risk. If you would invest 414.00 in Lery Seafood Group on October 29, 2024 and sell it today you would earn a total of 41.00 from holding Lery Seafood Group or generate 9.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lery Seafood Group vs. BORR DRILLING NEW
Performance |
| Timeline |
| Lery Seafood Group |
| BORR DRILLING NEW |
Lery Seafood and BORR DRILLING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lery Seafood and BORR DRILLING
The main advantage of trading using opposite Lery Seafood and BORR DRILLING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lery Seafood 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.| Lery Seafood vs. Mowi ASA | Lery Seafood vs. LEROY SEAFOOD GRUNSPADR | Lery Seafood vs. Yihai International Holding | Lery Seafood vs. Lery Seafood Group |
| BORR DRILLING vs. CHIBA BANK | BORR DRILLING vs. SUN LIFE FINANCIAL | BORR DRILLING vs. Erste Group Bank | BORR DRILLING vs. S E BANKEN A |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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