Correlation Between Borr Drilling and Core Laboratories
Can any of the company-specific risk be diversified away by investing in both Borr Drilling and Core Laboratories 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 Core Laboratories into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Borr Drilling and Core Laboratories NV, you can compare the effects of market volatilities on Borr Drilling and Core Laboratories 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 Core Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borr Drilling and Core Laboratories.
Diversification Opportunities for Borr Drilling and Core Laboratories
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Borr and Core is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Borr Drilling and Core Laboratories NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Laboratories 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 are associated (or correlated) with Core Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Laboratories has no effect on the direction of Borr Drilling i.e., Borr Drilling and Core Laboratories go up and down completely randomly.
Pair Corralation between Borr Drilling and Core Laboratories
Given the investment horizon of 90 days Borr Drilling is expected to generate 1.29 times less return on investment than Core Laboratories. But when comparing it to its historical volatility, Borr Drilling is 1.2 times less risky than Core Laboratories. It trades about 0.14 of its potential returns per unit of risk. Core Laboratories NV is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,049 in Core Laboratories NV on August 17, 2025 and sell it today you would earn a total of 490.00 from holding Core Laboratories NV or generate 46.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borr Drilling vs. Core Laboratories NV
Performance |
| Timeline |
| Borr Drilling |
| Core Laboratories |
Borr Drilling and Core Laboratories Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borr Drilling and Core Laboratories
The main advantage of trading using opposite Borr Drilling and Core Laboratories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borr Drilling position performs unexpectedly, Core Laboratories 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 Core Laboratories will offset losses from the drop in Core Laboratories' long position.| Borr Drilling vs. Nabors Industries | Borr Drilling vs. Precision Drilling | Borr Drilling vs. Teekay | Borr Drilling vs. Crossamerica Partners LP |
| Core Laboratories vs. Crossamerica Partners LP | Core Laboratories vs. Borr Drilling | Core Laboratories vs. Precision Drilling | Core Laboratories vs. Granite Ridge Resources |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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