Correlation Between Moneysupermarket and BORR DRILLING

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

By analyzing existing cross correlation between Moneysupermarket Group PLC and BORR DRILLING NEW, you can compare the effects of market volatilities on Moneysupermarket 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 Moneysupermarket with a short position of BORR DRILLING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moneysupermarket and BORR DRILLING.

Diversification Opportunities for Moneysupermarket and BORR DRILLING

-0.14

Correlation Coefficient

Moneysupermarket  BORR DRILLING

Good diversification

The 3 months correlation between Moneysupermarket and BORR is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Moneysupermarket Group PLC 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 Moneysupermarket 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 Moneysupermarket Group PLC 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 Moneysupermarket i.e., Moneysupermarket and BORR DRILLING go up and down completely randomly.

Pair Corralation between Moneysupermarket and BORR DRILLING

Assuming the 90 days horizon Moneysupermarket Group PLC is expected to under-perform the BORR DRILLING. But the stock apears to be less risky and, when comparing its historical volatility, Moneysupermarket Group PLC is 3.55 times less risky than BORR DRILLING. The stock trades about -0.02 of its potential returns per unit of risk. The BORR DRILLING NEW is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  146.00  in BORR DRILLING NEW on May 7, 2025 and sell it today you would earn a total of  18.00  from holding BORR DRILLING NEW or generate 12.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Moneysupermarket Group PLC  vs.  BORR DRILLING NEW

Moneysupermarket

Risk-Adjusted Performance

Weakest

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

BORR DRILLING NEW

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in BORR DRILLING NEW are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, BORR DRILLING reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Moneysupermarket and BORR DRILLING

The main advantage of trading using opposite Moneysupermarket and BORR DRILLING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moneysupermarket 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.

The idea behind Moneysupermarket Group PLC and BORR DRILLING NEW 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.