Correlation Between TOTAL ENERGY and Halliburton
Can any of the company-specific risk be diversified away by investing in both TOTAL ENERGY 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 TOTAL ENERGY and Halliburton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOTAL ENERGY SERVS and Halliburton, you can compare the effects of market volatilities on TOTAL ENERGY 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 TOTAL ENERGY with a short position of Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOTAL ENERGY and Halliburton.
Diversification Opportunities for TOTAL ENERGY and Halliburton
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TOTAL and Halliburton is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding TOTAL ENERGY SERVS and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and TOTAL ENERGY 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 TOTAL ENERGY SERVS 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 TOTAL ENERGY i.e., TOTAL ENERGY and Halliburton go up and down completely randomly.
Pair Corralation between TOTAL ENERGY and Halliburton
Assuming the 90 days horizon TOTAL ENERGY SERVS is expected to generate 1.0 times more return on investment than Halliburton. However, TOTAL ENERGY SERVS is 1.0 times less risky than Halliburton. It trades about 0.1 of its potential returns per unit of risk. Halliburton is currently generating about 0.0 per unit of risk. If you would invest 603.00 in TOTAL ENERGY SERVS on September 3, 2024 and sell it today you would earn a total of 162.00 from holding TOTAL ENERGY SERVS or generate 26.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.22% |
| Values | Daily Returns |
TOTAL ENERGY SERVS vs. Halliburton
Performance |
| Timeline |
| TOTAL ENERGY SERVS |
| Halliburton |
TOTAL ENERGY and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOTAL ENERGY and Halliburton
The main advantage of trading using opposite TOTAL ENERGY and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOTAL ENERGY 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.| TOTAL ENERGY vs. Halliburton | TOTAL ENERGY vs. Superior Plus Corp | TOTAL ENERGY vs. NMI Holdings | TOTAL ENERGY vs. Origin Agritech |
| Halliburton vs. Richardson Electronics | Halliburton vs. STORE ELECTRONIC | Halliburton vs. UET United Electronic | Halliburton vs. ELECTRONIC ARTS |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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