Correlation Between Access Midstream and Baker Hughes
Can any of the company-specific risk be diversified away by investing in both Access Midstream and Baker Hughes 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 Access Midstream and Baker Hughes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Access Midstream Partners and Baker Hughes, you can compare the effects of market volatilities on Access Midstream and Baker Hughes 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 Access Midstream with a short position of Baker Hughes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Access Midstream and Baker Hughes.
Diversification Opportunities for Access Midstream and Baker Hughes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Access and Baker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Access Midstream Partners and Baker Hughes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baker Hughes and Access Midstream 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 Access Midstream Partners are associated (or correlated) with Baker Hughes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baker Hughes has no effect on the direction of Access Midstream i.e., Access Midstream and Baker Hughes go up and down completely randomly.
Pair Corralation between Access Midstream and Baker Hughes
If you would invest (100.00) in Baker Hughes on January 19, 2024 and sell it today you would earn a total of 100.00 from holding Baker Hughes or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Access Midstream Partners vs. Baker Hughes
Performance |
| Timeline |
| Access Midstream Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Baker Hughes |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Access Midstream and Baker Hughes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Access Midstream and Baker Hughes
The main advantage of trading using opposite Access Midstream and Baker Hughes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Access Midstream position performs unexpectedly, Baker Hughes 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 Baker Hughes will offset losses from the drop in Baker Hughes' long position.| Access Midstream vs. Cumulus Media Class | Access Midstream vs. LB Foster | Access Midstream vs. Visionary Education Technology | Access Midstream vs. Merit Medical Systems |
| Baker Hughes vs. RadNet Inc | Baker Hughes vs. Waters | Baker Hughes vs. Finnovate Acquisition Corp | Baker Hughes vs. enVVeno Medical 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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