Correlation Between Halliburton and Ledesma SAAI
Can any of the company-specific risk be diversified away by investing in both Halliburton and Ledesma SAAI 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 Ledesma SAAI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Halliburton Co and Ledesma SAAI, you can compare the effects of market volatilities on Halliburton and Ledesma SAAI 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 Ledesma SAAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halliburton and Ledesma SAAI.
Diversification Opportunities for Halliburton and Ledesma SAAI
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Halliburton and Ledesma is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Halliburton Co and Ledesma SAAI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ledesma SAAI 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 Ledesma SAAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ledesma SAAI has no effect on the direction of Halliburton i.e., Halliburton and Ledesma SAAI go up and down completely randomly.
Pair Corralation between Halliburton and Ledesma SAAI
Assuming the 90 days trading horizon Halliburton Co is expected to generate 0.84 times more return on investment than Ledesma SAAI. However, Halliburton Co is 1.2 times less risky than Ledesma SAAI. It trades about 0.6 of its potential returns per unit of risk. Ledesma SAAI is currently generating about -0.08 per unit of risk. If you would invest 1,482,500 in Halliburton Co on October 20, 2024 and sell it today you would earn a total of 297,500 from holding Halliburton Co or generate 20.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Halliburton Co vs. Ledesma SAAI
Performance |
| Timeline |
| Halliburton |
| Ledesma SAAI |
Halliburton and Ledesma SAAI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halliburton and Ledesma SAAI
The main advantage of trading using opposite Halliburton and Ledesma SAAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halliburton position performs unexpectedly, Ledesma SAAI 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 Ledesma SAAI will offset losses from the drop in Ledesma SAAI's long position.| Halliburton vs. Camuzzi Gas Pampeana | Halliburton vs. Agrometal SAI | Halliburton vs. Telecom Argentina | Halliburton vs. Banco de Valores |
| Ledesma SAAI vs. Molinos Agro SA | Ledesma SAAI vs. Cresud SA | Ledesma SAAI vs. San Miguel AG | Ledesma SAAI vs. Inversora Juramento SA |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |