Correlation Between Calfrac Well and Halliburton
Can any of the company-specific risk be diversified away by investing in both Calfrac Well 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 Calfrac Well and Halliburton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calfrac Well Services and Halliburton, you can compare the effects of market volatilities on Calfrac Well 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 Calfrac Well with a short position of Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calfrac Well and Halliburton.
Diversification Opportunities for Calfrac Well and Halliburton
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Calfrac and Halliburton is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Calfrac Well Services and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and Calfrac Well 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 Calfrac Well Services 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 Calfrac Well i.e., Calfrac Well and Halliburton go up and down completely randomly.
Pair Corralation between Calfrac Well and Halliburton
Assuming the 90 days horizon Calfrac Well Services is expected to generate 0.68 times more return on investment than Halliburton. However, Calfrac Well Services is 1.47 times less risky than Halliburton. It trades about 0.08 of its potential returns per unit of risk. Halliburton is currently generating about -0.01 per unit of risk. If you would invest 261.00 in Calfrac Well Services on December 1, 2024 and sell it today you would earn a total of 5.00 from holding Calfrac Well Services or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calfrac Well Services vs. Halliburton
Performance |
| Timeline |
| Calfrac Well Services |
| Halliburton |
Calfrac Well and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calfrac Well and Halliburton
The main advantage of trading using opposite Calfrac Well and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calfrac Well 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.| Calfrac Well vs. Greenway Technologies | Calfrac Well vs. Akastor ASA | Calfrac Well vs. Auri Inc | Calfrac Well vs. Us Energy Initiative |
| Halliburton vs. Baker Hughes Co | Halliburton vs. NOV Inc | Halliburton vs. Tenaris SA ADR | Halliburton vs. Weatherford International PLC |
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.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |