Correlation Between Nabors Industries and Gelteq Limited

Can any of the company-specific risk be diversified away by investing in both Nabors Industries and Gelteq Limited 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 Nabors Industries and Gelteq Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nabors Industries and Gelteq Limited Ordinary, you can compare the effects of market volatilities on Nabors Industries and Gelteq Limited 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 Nabors Industries with a short position of Gelteq Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nabors Industries and Gelteq Limited.

Diversification Opportunities for Nabors Industries and Gelteq Limited

-0.18

Correlation Coefficient

Nabors Industries  Gelteq Limited

Good diversification

The 3 months correlation between Nabors and Gelteq is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Nabors Industries and Gelteq Limited Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gelteq Limited Ordinary and Nabors Industries 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 Nabors Industries are associated (or correlated) with Gelteq Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gelteq Limited Ordinary has no effect on the direction of Nabors Industries i.e., Nabors Industries and Gelteq Limited go up and down completely randomly.

Pair Corralation between Nabors Industries and Gelteq Limited

Considering the 90-day investment horizon Nabors Industries is expected to generate 0.23 times more return on investment than Gelteq Limited. However, Nabors Industries is 4.26 times less risky than Gelteq Limited. It trades about -0.13 of its potential returns per unit of risk. Gelteq Limited Ordinary is currently generating about -0.05 per unit of risk. If you would invest  6,777  in Nabors Industries on October 8, 2024 and sell it today you would lose (605.00) from holding Nabors Industries or give up 8.93% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Nabors Industries  vs.  Gelteq Limited Ordinary

Nabors Industries

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nabors Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Gelteq Limited Ordinary

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Gelteq Limited Ordinary are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, Gelteq Limited unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nabors Industries and Gelteq Limited

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

The idea behind Nabors Industries and Gelteq Limited Ordinary 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.

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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.