Correlation Between Schweiter Technologies and Baker Hughes
Can any of the company-specific risk be diversified away by investing in both Schweiter Technologies 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 Schweiter Technologies and Baker Hughes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schweiter Technologies AG and Baker Hughes Co, you can compare the effects of market volatilities on Schweiter Technologies 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 Schweiter Technologies with a short position of Baker Hughes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweiter Technologies and Baker Hughes.
Diversification Opportunities for Schweiter Technologies and Baker Hughes
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Schweiter and Baker is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Schweiter Technologies AG and Baker Hughes Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baker Hughes and Schweiter Technologies 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 Schweiter Technologies AG 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 Schweiter Technologies i.e., Schweiter Technologies and Baker Hughes go up and down completely randomly.
Pair Corralation between Schweiter Technologies and Baker Hughes
Assuming the 90 days trading horizon Schweiter Technologies is expected to generate 5.64 times less return on investment than Baker Hughes. In addition to that, Schweiter Technologies is 1.1 times more volatile than Baker Hughes Co. It trades about 0.01 of its total potential returns per unit of risk. Baker Hughes Co is currently generating about 0.07 per unit of volatility. If you would invest 3,409 in Baker Hughes Co on September 25, 2024 and sell it today you would earn a total of 597.00 from holding Baker Hughes Co or generate 17.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schweiter Technologies AG vs. Baker Hughes Co
Performance |
| Timeline |
| Schweiter Technologies |
| Baker Hughes |
Schweiter Technologies and Baker Hughes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schweiter Technologies and Baker Hughes
The main advantage of trading using opposite Schweiter Technologies and Baker Hughes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schweiter Technologies 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.| Schweiter Technologies vs. Uniper SE | Schweiter Technologies vs. Mulberry Group PLC | Schweiter Technologies vs. London Security Plc | Schweiter Technologies vs. Triad Group PLC |
| Baker Hughes vs. Schweiter Technologies AG | Baker Hughes vs. Playtech Plc | Baker Hughes vs. Tyson Foods Cl | Baker Hughes vs. Zegona Communications Plc |
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.
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