Correlation Between Baker Hughes and ION Geophysical
Can any of the company-specific risk be diversified away by investing in both Baker Hughes and ION Geophysical 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 Baker Hughes and ION Geophysical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baker Hughes and ION Geophysical, you can compare the effects of market volatilities on Baker Hughes and ION Geophysical 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 Baker Hughes with a short position of ION Geophysical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baker Hughes and ION Geophysical.
Diversification Opportunities for Baker Hughes and ION Geophysical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baker and ION is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baker Hughes and ION Geophysical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ION Geophysical and Baker Hughes 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 Baker Hughes are associated (or correlated) with ION Geophysical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ION Geophysical has no effect on the direction of Baker Hughes i.e., Baker Hughes and ION Geophysical go up and down completely randomly.
Pair Corralation between Baker Hughes and ION Geophysical
If you would invest 7.10 in ION Geophysical on January 25, 2024 and sell it today you would earn a total of 0.00 from holding ION Geophysical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Baker Hughes vs. ION Geophysical
Performance |
| Timeline |
| Baker Hughes |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ION Geophysical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baker Hughes and ION Geophysical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baker Hughes and ION Geophysical
The main advantage of trading using opposite Baker Hughes and ION Geophysical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baker Hughes position performs unexpectedly, ION Geophysical 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 ION Geophysical will offset losses from the drop in ION Geophysical's long position.| Baker Hughes vs. Pentair PLC | Baker Hughes vs. Griffon | Baker Hughes vs. Sea | Baker Hughes vs. The Coca Cola |
| ION Geophysical vs. Summit Hotel Properties | ION Geophysical vs. Portillos | ION Geophysical vs. The Cheesecake Factory | ION Geophysical vs. Kura Sushi USA |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |