Correlation Between Seadrill and Ball
Can any of the company-specific risk be diversified away by investing in both Seadrill and Ball 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 Seadrill and Ball into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seadrill Limited and Ball Corporation, you can compare the effects of market volatilities on Seadrill and Ball 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 Seadrill with a short position of Ball. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seadrill and Ball.
Diversification Opportunities for Seadrill and Ball
Pay attention - limited upside
The 3 months correlation between Seadrill and Ball is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Seadrill Limited and Ball Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ball and Seadrill 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 Seadrill Limited are associated (or correlated) with Ball. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ball has no effect on the direction of Seadrill i.e., Seadrill and Ball go up and down completely randomly.
Pair Corralation between Seadrill and Ball
If you would invest (100.00) in Ball Corporation on January 31, 2024 and sell it today you would earn a total of 100.00 from holding Ball Corporation or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Seadrill Limited vs. Ball Corp.
Performance |
Timeline |
Seadrill Limited |
Ball |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Seadrill and Ball Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Seadrill and Ball
The main advantage of trading using opposite Seadrill and Ball positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seadrill position performs unexpectedly, Ball 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 Ball will offset losses from the drop in Ball's long position.Seadrill vs. Diamond Offshore Drilling | Seadrill vs. Nabors Industries | Seadrill vs. Borr Drilling | Seadrill vs. Patterson UTI Energy |
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 CEOs Directory module to screen CEOs from public companies around the world.
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