Correlation Between Halliburton and Bolsas Y
Can any of the company-specific risk be diversified away by investing in both Halliburton and Bolsas Y 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 Halliburton and Bolsas Y into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Halliburton Co and Bolsas y Mercados, you can compare the effects of market volatilities on Halliburton and Bolsas Y 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 Halliburton with a short position of Bolsas Y. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halliburton and Bolsas Y.
Diversification Opportunities for Halliburton and Bolsas Y
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Halliburton and Bolsas is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Halliburton Co and Bolsas y Mercados in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolsas y Mercados and Halliburton 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 Halliburton Co are associated (or correlated) with Bolsas Y. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolsas y Mercados has no effect on the direction of Halliburton i.e., Halliburton and Bolsas Y go up and down completely randomly.
Pair Corralation between Halliburton and Bolsas Y
Assuming the 90 days trading horizon Halliburton Co is expected to under-perform the Bolsas Y. But the stock apears to be less risky and, when comparing its historical volatility, Halliburton Co is 1.21 times less risky than Bolsas Y. The stock trades about -0.08 of its potential returns per unit of risk. The Bolsas y Mercados is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 31,650 in Bolsas y Mercados on November 2, 2024 and sell it today you would earn a total of 17,900 from holding Bolsas y Mercados or generate 56.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.04% |
| Values | Daily Returns |
Halliburton Co vs. Bolsas y Mercados
Performance |
| Timeline |
| Halliburton |
| Bolsas y Mercados |
Halliburton and Bolsas Y Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halliburton and Bolsas Y
The main advantage of trading using opposite Halliburton and Bolsas Y positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halliburton position performs unexpectedly, Bolsas Y 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 Bolsas Y will offset losses from the drop in Bolsas Y's long position.| Halliburton vs. Edesa Holding SA | Halliburton vs. Boldt SA | Halliburton vs. Agrometal SAI | Halliburton vs. United States Steel |
| Bolsas Y vs. Harmony Gold Mining | Bolsas Y vs. Compania de Transporte | Bolsas Y vs. United States Steel | Bolsas Y vs. Agrometal SAI |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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