Correlation Between Mangazeya Mining and Seadrill

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

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

Diversification Opportunities for Mangazeya Mining and Seadrill

0.0

Correlation Coefficient

Mangazeya Mining  Seadrill

Pay attention - limited upside

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

Pair Corralation between Mangazeya Mining and Seadrill

If you would invest  4,075  in Seadrill Limited on August 31, 2024 and sell it today you would lose (52.00) from holding Seadrill Limited or give up 1.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Mangazeya Mining  vs.  Seadrill Limited

Mangazeya Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mangazeya Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Mangazeya Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Seadrill Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Seadrill Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Seadrill is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Mangazeya Mining and Seadrill

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

The idea behind Mangazeya Mining and Seadrill Limited 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.