Correlation Between Cresud SA and Halliburton
Can any of the company-specific risk be diversified away by investing in both Cresud 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 Cresud SA and Halliburton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cresud SA and Halliburton Co, you can compare the effects of market volatilities on Cresud 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 Cresud SA with a short position of Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SA and Halliburton.
Diversification Opportunities for Cresud SA and Halliburton
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cresud and Halliburton is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SA and Halliburton Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and Cresud 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 Cresud 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 Cresud SA i.e., Cresud SA and Halliburton go up and down completely randomly.
Pair Corralation between Cresud SA and Halliburton
Assuming the 90 days trading horizon Cresud SA is expected to generate 1.17 times more return on investment than Halliburton. However, Cresud SA is 1.17 times more volatile than Halliburton Co. It trades about 0.15 of its potential returns per unit of risk. Halliburton Co is currently generating about -0.08 per unit of risk. If you would invest 104,500 in Cresud SA on November 2, 2024 and sell it today you would earn a total of 48,500 from holding Cresud SA or generate 46.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cresud SA vs. Halliburton Co
Performance |
| Timeline |
| Cresud SA |
| Halliburton |
Cresud SA and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cresud SA and Halliburton
The main advantage of trading using opposite Cresud SA and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud 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.| Cresud SA vs. Harmony Gold Mining | Cresud SA vs. United States Steel | Cresud SA vs. Transportadora de Gas | Cresud SA vs. Telecom Argentina |
| Halliburton vs. Edesa Holding SA | Halliburton vs. Boldt SA | Halliburton vs. Agrometal SAI | 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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