Correlation Between Beowulf Mining and Baker Hughes
Can any of the company-specific risk be diversified away by investing in both Beowulf Mining 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 Beowulf Mining and Baker Hughes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beowulf Mining and Baker Hughes Co, you can compare the effects of market volatilities on Beowulf Mining 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 Beowulf Mining with a short position of Baker Hughes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beowulf Mining and Baker Hughes.
Diversification Opportunities for Beowulf Mining and Baker Hughes
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beowulf and Baker is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Beowulf Mining and Baker Hughes Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baker Hughes and Beowulf Mining 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 Beowulf Mining 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 Beowulf Mining i.e., Beowulf Mining and Baker Hughes go up and down completely randomly.
Pair Corralation between Beowulf Mining and Baker Hughes
Assuming the 90 days trading horizon Beowulf Mining is expected to under-perform the Baker Hughes. In addition to that, Beowulf Mining is 4.04 times more volatile than Baker Hughes Co. It trades about -0.16 of its total potential returns per unit of risk. Baker Hughes Co is currently generating about 0.12 per unit of volatility. If you would invest 4,148 in Baker Hughes Co on October 11, 2024 and sell it today you would earn a total of 160.00 from holding Baker Hughes Co or generate 3.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Beowulf Mining vs. Baker Hughes Co
Performance |
| Timeline |
| Beowulf Mining |
| Baker Hughes |
Beowulf Mining and Baker Hughes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beowulf Mining and Baker Hughes
The main advantage of trading using opposite Beowulf Mining and Baker Hughes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beowulf Mining 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.| Beowulf Mining vs. Micron Technology | Beowulf Mining vs. Alfa Financial Software | Beowulf Mining vs. Software Circle plc | Beowulf Mining vs. Molson Coors Beverage |
| Baker Hughes vs. Kaufman Et Broad | Baker Hughes vs. Eastinco Mining Exploration | Baker Hughes vs. Beowulf Mining | Baker Hughes vs. GoldMining |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |