Correlation Between BORR DRILLING and Allianz SE

Can any of the company-specific risk be diversified away by investing in both BORR DRILLING and Allianz SE 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 Allianz SE 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 Allianz SE, you can compare the effects of market volatilities on BORR DRILLING and Allianz SE 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 Allianz SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of BORR DRILLING and Allianz SE.

Diversification Opportunities for BORR DRILLING and Allianz SE

0.0

Correlation Coefficient

BORR DRILLING  Allianz SE

Pay attention - limited upside

The 3 months correlation between BORR and Allianz is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BORR DRILLING NEW and Allianz SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz SE 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 Allianz SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianz SE has no effect on the direction of BORR DRILLING i.e., BORR DRILLING and Allianz SE go up and down completely randomly.

Pair Corralation between BORR DRILLING and Allianz SE

If you would invest  0.00  in Allianz SE on December 11, 2024 and sell it today you would earn a total of  0.00  from holding Allianz SE or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

BORR DRILLING NEW  vs.  Allianz SE

BORR DRILLING NEW

Risk-Adjusted Performance

Very Weak

Over the last 90 days BORR DRILLING NEW has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Allianz SE

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allianz SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Allianz SE is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with BORR DRILLING and Allianz SE

The main advantage of trading using opposite BORR DRILLING and Allianz SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BORR DRILLING position performs unexpectedly, Allianz SE 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 Allianz SE will offset losses from the drop in Allianz SE's long position.

The idea behind BORR DRILLING NEW and Allianz SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.