Pair Correlation Between Halliburton and Baker Hughes

This module allows you to analyze existing cross correlation between Halliburton Company and Baker Hughes Incorporated. You can compare the effects of market volatilities on Halliburton 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 Halliburton with a short position of Baker Hughes. See also your portfolio center. Please also check ongoing floating volatility patterns of Halliburton and Baker Hughes.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 Halliburton Company  vs   Baker Hughes Incorporated
 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Halliburton is expected to generate 154.82 times less return on investment than Baker Hughes. But when comparing it to its historical volatility, Halliburton Company is 224.89 times less risky than Baker Hughes. It trades about 0.47 of its potential returns per unit of risk. Baker Hughes Incorporated is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest  4,941  in Baker Hughes Incorporated on December 25, 2017 and sell it today you would lose (4,934)  from holding Baker Hughes Incorporated or give up 99.86% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Halliburton and Baker Hughes
-0.16

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy70.0%
ValuesDaily Returns

Diversification

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Halliburton Company and Baker Hughes Incorporated in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Baker Hughes Incorporated and Halliburton 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 Halliburton Company 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 Incorporated has no effect on the direction of Halliburton i.e. Halliburton and Baker Hughes go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Halliburton

  
30 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Halliburton Company are ranked lower than 30 (%) of all global equities and portfolios over the last 30 days.

Baker Hughes Incorporated

  
21 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Baker Hughes Incorporated are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days.