Correlation Between Cboe UK and Baker Hughes
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By analyzing existing cross correlation between Cboe UK Consumer and Baker Hughes Co, you can compare the effects of market volatilities on Cboe UK 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 Cboe UK with a short position of Baker Hughes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Baker Hughes.
Diversification Opportunities for Cboe UK and Baker Hughes
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cboe and Baker is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Baker Hughes Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baker Hughes and Cboe UK 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 Cboe UK Consumer 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 Cboe UK i.e., Cboe UK and Baker Hughes go up and down completely randomly.
Pair Corralation between Cboe UK and Baker Hughes
Assuming the 90 days trading horizon Cboe UK is expected to generate 1.34 times less return on investment than Baker Hughes. But when comparing it to its historical volatility, Cboe UK Consumer is 1.98 times less risky than Baker Hughes. It trades about 0.08 of its potential returns per unit of risk. Baker Hughes Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,810 in Baker Hughes Co on September 4, 2024 and sell it today you would earn a total of 1,525 from holding Baker Hughes Co or generate 54.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 96.65% |
| Values | Daily Returns |
Cboe UK Consumer vs. Baker Hughes Co
Performance |
| Timeline |
Cboe UK and Baker Hughes Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Baker Hughes Co
Pair trading matchups for Baker Hughes
Pair Trading with Cboe UK and Baker Hughes
The main advantage of trading using opposite Cboe UK and Baker Hughes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK 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.| Cboe UK vs. Bisichi Mining PLC | Cboe UK vs. United Airlines Holdings | Cboe UK vs. Blackrock World Mining | Cboe UK vs. Greenroc Mining PLC |
| Baker Hughes vs. Samsung Electronics Co | Baker Hughes vs. Samsung Electronics Co | Baker Hughes vs. Hyundai Motor | Baker Hughes vs. Toyota Motor Corp |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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