Correlation Between Wesco Aircraft and Baker Hughes
Can any of the company-specific risk be diversified away by investing in both Wesco Aircraft 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 Wesco Aircraft and Baker Hughes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wesco Aircraft Holdings and Baker Hughes, you can compare the effects of market volatilities on Wesco Aircraft 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 Wesco Aircraft with a short position of Baker Hughes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesco Aircraft and Baker Hughes.
Diversification Opportunities for Wesco Aircraft and Baker Hughes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wesco and Baker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wesco Aircraft Holdings and Baker Hughes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baker Hughes and Wesco Aircraft 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 Wesco Aircraft Holdings 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 Wesco Aircraft i.e., Wesco Aircraft and Baker Hughes go up and down completely randomly.
Pair Corralation between Wesco Aircraft and Baker Hughes
If you would invest (100.00) in Baker Hughes on January 24, 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 | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wesco Aircraft Holdings vs. Baker Hughes
Performance |
| Timeline |
| Wesco Aircraft Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Baker Hughes |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Wesco Aircraft and Baker Hughes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesco Aircraft and Baker Hughes
The main advantage of trading using opposite Wesco Aircraft and Baker Hughes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesco Aircraft 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.| Wesco Aircraft vs. Emerson Radio | Wesco Aircraft vs. JD Sports Fashion | Wesco Aircraft vs. Hasbro Inc | Wesco Aircraft vs. Simon Property Group |
| Baker Hughes vs. Cedar Fair LP | Baker Hughes vs. Semtech | Baker Hughes vs. Arrow Electronics | Baker Hughes vs. ScanSource |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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