Correlation Between BORR DRILLING and Sixt Leasing
Can any of the company-specific risk be diversified away by investing in both BORR DRILLING and Sixt Leasing 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 Sixt Leasing 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 Sixt Leasing SE, you can compare the effects of market volatilities on BORR DRILLING and Sixt Leasing 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 Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of BORR DRILLING and Sixt Leasing.
Diversification Opportunities for BORR DRILLING and Sixt Leasing
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BORR and Sixt is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding BORR DRILLING NEW and Sixt Leasing SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt Leasing 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 Sixt Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt Leasing SE has no effect on the direction of BORR DRILLING i.e., BORR DRILLING and Sixt Leasing go up and down completely randomly.
Pair Corralation between BORR DRILLING and Sixt Leasing
Assuming the 90 days horizon BORR DRILLING NEW is expected to under-perform the Sixt Leasing. In addition to that, BORR DRILLING is 1.67 times more volatile than Sixt Leasing SE. It trades about -0.2 of its total potential returns per unit of risk. Sixt Leasing SE is currently generating about 0.05 per unit of volatility. If you would invest 940.00 in Sixt Leasing SE on December 21, 2024 and sell it today you would earn a total of 45.00 from holding Sixt Leasing SE or generate 4.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BORR DRILLING NEW vs. Sixt Leasing SE
Performance |
Timeline |
BORR DRILLING NEW |
Sixt Leasing SE |
BORR DRILLING and Sixt Leasing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BORR DRILLING and Sixt Leasing
The main advantage of trading using opposite BORR DRILLING and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BORR DRILLING position performs unexpectedly, Sixt Leasing 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 Sixt Leasing will offset losses from the drop in Sixt Leasing's long position.BORR DRILLING vs. Uber Technologies | BORR DRILLING vs. Luckin Coffee | BORR DRILLING vs. FORTRESS BIOTECHPRFA 25 | BORR DRILLING vs. SOFI TECHNOLOGIES |
Sixt Leasing vs. AGNC INVESTMENT | Sixt Leasing vs. SLR Investment Corp | Sixt Leasing vs. United Utilities Group | Sixt Leasing vs. Canadian Utilities 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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