Correlation Between Borr Drilling and Clean Energy
Can any of the company-specific risk be diversified away by investing in both Borr Drilling and Clean Energy 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 Clean Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Borr Drilling and Clean Energy Fuels, you can compare the effects of market volatilities on Borr Drilling and Clean Energy 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 Clean Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borr Drilling and Clean Energy.
Diversification Opportunities for Borr Drilling and Clean Energy
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Borr and Clean is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Borr Drilling and Clean Energy Fuels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Energy Fuels 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 Clean Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Energy Fuels has no effect on the direction of Borr Drilling i.e., Borr Drilling and Clean Energy go up and down completely randomly.
Pair Corralation between Borr Drilling and Clean Energy
Given the investment horizon of 90 days Borr Drilling is expected to generate 1.04 times more return on investment than Clean Energy. However, Borr Drilling is 1.04 times more volatile than Clean Energy Fuels. It trades about 0.13 of its potential returns per unit of risk. Clean Energy Fuels is currently generating about -0.02 per unit of risk. If you would invest 238.00 in Borr Drilling on August 20, 2025 and sell it today you would earn a total of 78.00 from holding Borr Drilling or generate 32.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borr Drilling vs. Clean Energy Fuels
Performance |
| Timeline |
| Borr Drilling |
| Clean Energy Fuels |
Borr Drilling and Clean Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borr Drilling and Clean Energy
The main advantage of trading using opposite Borr Drilling and Clean Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borr Drilling position performs unexpectedly, Clean Energy 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 Clean Energy will offset losses from the drop in Clean Energy's long position.| Borr Drilling vs. Nabors Industries | Borr Drilling vs. Precision Drilling | Borr Drilling vs. Teekay | Borr Drilling vs. Crossamerica Partners LP |
| Clean Energy vs. Vital Energy | Clean Energy vs. NGL Energy Partners | Clean Energy vs. Kosmos Energy | Clean Energy vs. Sable Offshore Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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