Correlation Between Baker Hughes and Jutal Offshore
Can any of the company-specific risk be diversified away by investing in both Baker Hughes and Jutal Offshore 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 Baker Hughes and Jutal Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baker Hughes Co and Jutal Offshore Oil, you can compare the effects of market volatilities on Baker Hughes and Jutal Offshore 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 Baker Hughes with a short position of Jutal Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baker Hughes and Jutal Offshore.
Diversification Opportunities for Baker Hughes and Jutal Offshore
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baker and Jutal is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Baker Hughes Co and Jutal Offshore Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jutal Offshore Oil and Baker Hughes 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 Baker Hughes Co are associated (or correlated) with Jutal Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jutal Offshore Oil has no effect on the direction of Baker Hughes i.e., Baker Hughes and Jutal Offshore go up and down completely randomly.
Pair Corralation between Baker Hughes and Jutal Offshore
If you would invest 3,679 in Baker Hughes Co on August 24, 2024 and sell it today you would earn a total of 809.00 from holding Baker Hughes Co or generate 21.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Baker Hughes Co vs. Jutal Offshore Oil
Performance |
| Timeline |
| Baker Hughes |
| Jutal Offshore Oil |
Baker Hughes and Jutal Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baker Hughes and Jutal Offshore
The main advantage of trading using opposite Baker Hughes and Jutal Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baker Hughes position performs unexpectedly, Jutal Offshore 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 Jutal Offshore will offset losses from the drop in Jutal Offshore's long position.| Baker Hughes vs. Schlumberger NV | Baker Hughes vs. NOV Inc | Baker Hughes vs. Weatherford International PLC | Baker Hughes vs. Tenaris SA ADR |
| Jutal Offshore vs. Radcom | Jutal Offshore vs. ServiceNow | Jutal Offshore vs. Getty Images Holdings | Jutal Offshore vs. Analog Devices |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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