Correlation Between Supreme Industries and Baker Hughes
Can any of the company-specific risk be diversified away by investing in both Supreme Industries 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 Supreme Industries and Baker Hughes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supreme Industries and Baker Hughes, you can compare the effects of market volatilities on Supreme Industries 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 Supreme Industries with a short position of Baker Hughes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supreme Industries and Baker Hughes.
Diversification Opportunities for Supreme Industries and Baker Hughes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 1 month correlation between Supreme and Baker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Supreme Industries and Baker Hughes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baker Hughes and Supreme Industries 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 Supreme Industries 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 Supreme Industries i.e., Supreme Industries and Baker Hughes go up and down completely randomly.
Pair Corralation between Supreme Industries and Baker Hughes
If you would invest (100.00) in Baker Hughes on January 20, 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 | 1 Month [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supreme Industries vs. Baker Hughes
Performance |
| Timeline |
| Supreme Industries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Baker Hughes |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Supreme Industries and Baker Hughes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supreme Industries and Baker Hughes
The main advantage of trading using opposite Supreme Industries and Baker Hughes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supreme Industries 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.| Supreme Industries vs. KeyCorp | Supreme Industries vs. HF Sinclair Corp | Supreme Industries vs. Chiba Bank Ltd | Supreme Industries vs. PennantPark Floating Rate |
| Baker Hughes vs. Franklin Wireless Corp | Baker Hughes vs. Life Time Group | Baker Hughes vs. ANTA Sports Products | Baker Hughes vs. Cleanaway Waste Management |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |