Correlation Between Capex SA and Halliburton
Can any of the company-specific risk be diversified away by investing in both Capex SA 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 Capex SA and Halliburton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capex SA and Halliburton Co, you can compare the effects of market volatilities on Capex SA 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 Capex SA with a short position of Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capex SA and Halliburton.
Diversification Opportunities for Capex SA and Halliburton
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Capex and Halliburton is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Capex SA and Halliburton Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and Capex SA 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 Capex SA 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 Capex SA i.e., Capex SA and Halliburton go up and down completely randomly.
Pair Corralation between Capex SA and Halliburton
Assuming the 90 days trading horizon Capex SA is expected to generate 1.35 times more return on investment than Halliburton. However, Capex SA is 1.35 times more volatile than Halliburton Co. It trades about 0.16 of its potential returns per unit of risk. Halliburton Co is currently generating about 0.08 per unit of risk. If you would invest 70,500 in Capex SA on August 31, 2024 and sell it today you would earn a total of 804,500 from holding Capex SA or generate 1141.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.35% |
| Values | Daily Returns |
Capex SA vs. Halliburton Co
Performance |
| Timeline |
| Capex SA |
| Halliburton |
Capex SA and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capex SA and Halliburton
The main advantage of trading using opposite Capex SA and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capex SA 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.| Capex SA vs. Transportadora de Gas | Capex SA vs. Harmony Gold Mining | Capex SA vs. Compania de Transporte | Capex SA vs. Agrometal SAI |
| Halliburton vs. Edesa Holding SA | Halliburton vs. Longvie SA | Halliburton vs. American Express Co | Halliburton vs. United States Steel |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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