Correlation Between ProCredit Holding and BORR DRILLING
Can any of the company-specific risk be diversified away by investing in both ProCredit Holding and BORR DRILLING 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 ProCredit Holding and BORR DRILLING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProCredit Holding AG and BORR DRILLING NEW, you can compare the effects of market volatilities on ProCredit Holding and BORR DRILLING 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 ProCredit Holding with a short position of BORR DRILLING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProCredit Holding and BORR DRILLING.
Diversification Opportunities for ProCredit Holding and BORR DRILLING
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between ProCredit and BORR is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding ProCredit Holding AG and BORR DRILLING NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BORR DRILLING NEW and ProCredit Holding 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 ProCredit Holding AG are associated (or correlated) with BORR DRILLING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BORR DRILLING NEW has no effect on the direction of ProCredit Holding i.e., ProCredit Holding and BORR DRILLING go up and down completely randomly.
Pair Corralation between ProCredit Holding and BORR DRILLING
Assuming the 90 days horizon ProCredit Holding AG is expected to generate 0.76 times more return on investment than BORR DRILLING. However, ProCredit Holding AG is 1.32 times less risky than BORR DRILLING. It trades about 0.16 of its potential returns per unit of risk. BORR DRILLING NEW is currently generating about 0.01 per unit of risk. If you would invest 814.00 in ProCredit Holding AG on March 14, 2024 and sell it today you would earn a total of 172.00 from holding ProCredit Holding AG or generate 21.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 93.44% |
Values | Daily Returns |
ProCredit Holding AG vs. BORR DRILLING NEW
Performance |
Timeline |
ProCredit Holding |
BORR DRILLING NEW |
ProCredit Holding and BORR DRILLING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ProCredit Holding and BORR DRILLING
The main advantage of trading using opposite ProCredit Holding and BORR DRILLING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProCredit Holding position performs unexpectedly, BORR DRILLING 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 BORR DRILLING will offset losses from the drop in BORR DRILLING's long position.ProCredit Holding vs. REINET INVESTMENTS SCA | ProCredit Holding vs. Quaker Chemical | ProCredit Holding vs. CHEMICAL INDUSTRIES | ProCredit Holding vs. Harmony Gold Mining |
BORR DRILLING vs. Sinopec Oilfield Service | BORR DRILLING vs. Patterson UTI Energy | BORR DRILLING vs. PRECISION DRILLING P | BORR DRILLING vs. ODFJELL DRILLLTD DL 01 |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |