Correlation Between Akastor ASA and Halliburton
Can any of the company-specific risk be diversified away by investing in both Akastor ASA 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 Akastor ASA and Halliburton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akastor ASA and Halliburton, you can compare the effects of market volatilities on Akastor ASA 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 Akastor ASA with a short position of Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akastor ASA and Halliburton.
Diversification Opportunities for Akastor ASA and Halliburton
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Akastor and Halliburton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Akastor ASA and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and Akastor ASA 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 Akastor ASA 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 Akastor ASA i.e., Akastor ASA and Halliburton go up and down completely randomly.
Pair Corralation between Akastor ASA and Halliburton
Assuming the 90 days horizon Akastor ASA is expected to generate 0.96 times more return on investment than Halliburton. However, Akastor ASA is 1.04 times less risky than Halliburton. It trades about 0.06 of its potential returns per unit of risk. Halliburton is currently generating about -0.07 per unit of risk. If you would invest 106.00 in Akastor ASA on September 3, 2024 and sell it today you would earn a total of 19.00 from holding Akastor ASA or generate 17.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akastor ASA vs. Halliburton
Performance |
| Timeline |
| Akastor ASA |
| Halliburton |
Akastor ASA and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akastor ASA and Halliburton
The main advantage of trading using opposite Akastor ASA and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akastor ASA 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.| Akastor ASA vs. Expro Group Holdings | Akastor ASA vs. ChampionX | Akastor ASA vs. Ranger Energy Services | Akastor ASA vs. Cactus Inc |
| Halliburton vs. Baker Hughes Co | Halliburton vs. NOV Inc | Halliburton vs. Tenaris SA ADR | Halliburton vs. Weatherford International 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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