Correlation Between BORR DRILLING and Glatfelter
Can any of the company-specific risk be diversified away by investing in both BORR DRILLING and Glatfelter 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 BORR DRILLING and Glatfelter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BORR DRILLING NEW and Glatfelter, you can compare the effects of market volatilities on BORR DRILLING and Glatfelter 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 BORR DRILLING with a short position of Glatfelter. Check out your portfolio center. Please also check ongoing floating volatility patterns of BORR DRILLING and Glatfelter.
Diversification Opportunities for BORR DRILLING and Glatfelter
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BORR and Glatfelter is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding BORR DRILLING NEW and Glatfelter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glatfelter and BORR DRILLING 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 BORR DRILLING NEW are associated (or correlated) with Glatfelter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glatfelter has no effect on the direction of BORR DRILLING i.e., BORR DRILLING and Glatfelter go up and down completely randomly.
Pair Corralation between BORR DRILLING and Glatfelter
If you would invest 2,032 in Glatfelter on September 25, 2024 and sell it today you would earn a total of 0.00 from holding Glatfelter or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BORR DRILLING NEW vs. Glatfelter
Performance |
Timeline |
BORR DRILLING NEW |
Glatfelter |
BORR DRILLING and Glatfelter Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BORR DRILLING and Glatfelter
The main advantage of trading using opposite BORR DRILLING and Glatfelter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BORR DRILLING position performs unexpectedly, Glatfelter 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 Glatfelter will offset losses from the drop in Glatfelter's long position.BORR DRILLING vs. Sinopec Oilfield Service | BORR DRILLING vs. Helmerich Payne | BORR DRILLING vs. Patterson UTI Energy | BORR DRILLING vs. Nabors Industries |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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