Correlation Between Halliburton and Pardee Resources
Can any of the company-specific risk be diversified away by investing in both Halliburton and Pardee Resources 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 Pardee Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Halliburton and Pardee Resources Co, you can compare the effects of market volatilities on Halliburton and Pardee Resources 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 Pardee Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halliburton and Pardee Resources.
Diversification Opportunities for Halliburton and Pardee Resources
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Halliburton and Pardee is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Halliburton and Pardee Resources Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pardee Resources 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 are associated (or correlated) with Pardee Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pardee Resources has no effect on the direction of Halliburton i.e., Halliburton and Pardee Resources go up and down completely randomly.
Pair Corralation between Halliburton and Pardee Resources
Considering the 90-day investment horizon Halliburton is expected to generate 2.57 times more return on investment than Pardee Resources. However, Halliburton is 2.57 times more volatile than Pardee Resources Co. It trades about 0.31 of its potential returns per unit of risk. Pardee Resources Co is currently generating about -0.03 per unit of risk. If you would invest 2,785 in Halliburton on August 25, 2024 and sell it today you would earn a total of 409.00 from holding Halliburton or generate 14.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Halliburton vs. Pardee Resources Co
Performance |
| Timeline |
| Halliburton |
| Pardee Resources |
Halliburton and Pardee Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halliburton and Pardee Resources
The main advantage of trading using opposite Halliburton and Pardee Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halliburton position performs unexpectedly, Pardee Resources 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 Pardee Resources will offset losses from the drop in Pardee Resources' long position.| Halliburton vs. ProPetro Holding Corp | Halliburton vs. RPC Inc | Halliburton vs. MRC Global | Halliburton vs. Oil States International |
| Pardee Resources vs. Expro Group Holdings | Pardee Resources vs. ChampionX | Pardee Resources vs. Ranger Energy Services | Pardee Resources vs. Cactus Inc |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |