Correlation Between Caterpillar and HALLIBURTON
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By analyzing existing cross correlation between Caterpillar and HALLIBURTON 475 percent, you can compare the effects of market volatilities on Caterpillar 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 Caterpillar with a short position of HALLIBURTON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caterpillar and HALLIBURTON.
Diversification Opportunities for Caterpillar and HALLIBURTON
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Caterpillar and HALLIBURTON is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Caterpillar and HALLIBURTON 475 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HALLIBURTON 475 percent and Caterpillar 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 Caterpillar 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 475 percent has no effect on the direction of Caterpillar i.e., Caterpillar and HALLIBURTON go up and down completely randomly.
Pair Corralation between Caterpillar and HALLIBURTON
Considering the 90-day investment horizon Caterpillar is expected to generate 1.65 times more return on investment than HALLIBURTON. However, Caterpillar is 1.65 times more volatile than HALLIBURTON 475 percent. It trades about 0.15 of its potential returns per unit of risk. HALLIBURTON 475 percent is currently generating about -0.05 per unit of risk. If you would invest 37,963 in Caterpillar on September 2, 2024 and sell it today you would earn a total of 2,648 from holding Caterpillar or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Caterpillar vs. HALLIBURTON 475 percent
Performance |
| Timeline |
| Caterpillar |
| HALLIBURTON 475 percent |
Caterpillar and HALLIBURTON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caterpillar and HALLIBURTON
The main advantage of trading using opposite Caterpillar and HALLIBURTON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caterpillar 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.| Caterpillar vs. AGCO Corporation | Caterpillar vs. Nikola Corp | Caterpillar vs. PACCAR Inc | Caterpillar vs. Deere Company |
| HALLIBURTON vs. JD Sports Fashion | HALLIBURTON vs. Sandstorm Gold Ltd | HALLIBURTON vs. Funko Inc | HALLIBURTON vs. Aerofoam Metals |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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