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
Halliburton Company vs Baker Hughes Incorporated
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.
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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.
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.
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.