Correlation Between Baker Hughes and Halliburton
Can any of the company-specific risk be diversified away by investing in both Baker Hughes and Halliburton 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 Halliburton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baker Hughes and Halliburton, you can compare the effects of market volatilities on Baker Hughes and Halliburton 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 Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baker Hughes and Halliburton.
Diversification Opportunities for Baker Hughes and Halliburton
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baker and Halliburton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baker Hughes and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton 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 Halliburton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halliburton has no effect on the direction of Baker Hughes i.e., Baker Hughes and Halliburton go up and down completely randomly.
Pair Corralation between Baker Hughes and Halliburton
If you would invest 3,864 in Halliburton on December 29, 2023 and sell it today you would earn a total of 19.00 from holding Halliburton or generate 0.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Baker Hughes vs. Halliburton
Performance |
Timeline |
Baker Hughes |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Halliburton |
Baker Hughes and Halliburton Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Baker Hughes and Halliburton
The main advantage of trading using opposite Baker Hughes and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baker Hughes position performs unexpectedly, Halliburton 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 Halliburton will offset losses from the drop in Halliburton's long position.Baker Hughes vs. Ioneer Ltd American | Baker Hughes vs. Loandepot | Baker Hughes vs. Alta Equipment Group | Baker Hughes vs. Hertz Global Holdings |
Halliburton vs. FARO Technologies | Halliburton vs. Asure Software | Halliburton vs. BBB Foods | Halliburton vs. ServiceNow |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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