Correlation Between FibraHotel and Halliburton
Can any of the company-specific risk be diversified away by investing in both FibraHotel 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 FibraHotel and Halliburton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FibraHotel and Halliburton, you can compare the effects of market volatilities on FibraHotel 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 FibraHotel with a short position of Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of FibraHotel and Halliburton.
Diversification Opportunities for FibraHotel and Halliburton
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FibraHotel and Halliburton is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding FibraHotel and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and FibraHotel 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 FibraHotel 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 FibraHotel i.e., FibraHotel and Halliburton go up and down completely randomly.
Pair Corralation between FibraHotel and Halliburton
Assuming the 90 days trading horizon FibraHotel is expected to generate 0.48 times more return on investment than Halliburton. However, FibraHotel is 2.1 times less risky than Halliburton. It trades about 0.03 of its potential returns per unit of risk. Halliburton is currently generating about -0.11 per unit of risk. If you would invest 900.00 in FibraHotel on September 15, 2024 and sell it today you would earn a total of 8.00 from holding FibraHotel or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
FibraHotel vs. Halliburton
Performance |
| Timeline |
| FibraHotel |
| Halliburton |
FibraHotel and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FibraHotel and Halliburton
The main advantage of trading using opposite FibraHotel and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FibraHotel 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.| FibraHotel vs. Fibra UNO | FibraHotel vs. Casa de Bolsa | FibraHotel vs. The Select Sector | FibraHotel vs. Promotora y Operadora |
| Halliburton vs. DXC Technology | Halliburton vs. First Majestic Silver | Halliburton vs. Martin Marietta Materials | Halliburton vs. FibraHotel |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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