Correlation Between Halliburton and Expro Group
Can any of the company-specific risk be diversified away by investing in both Halliburton and Expro Group 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 Expro Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Halliburton and Expro Group Holdings, you can compare the effects of market volatilities on Halliburton and Expro Group 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 Expro Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halliburton and Expro Group.
Diversification Opportunities for Halliburton and Expro Group
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Halliburton and Expro is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Halliburton and Expro Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expro Group Holdings 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 Expro Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expro Group Holdings has no effect on the direction of Halliburton i.e., Halliburton and Expro Group go up and down completely randomly.
Pair Corralation between Halliburton and Expro Group
Considering the 90-day investment horizon Halliburton is expected to generate 0.6 times more return on investment than Expro Group. However, Halliburton is 1.67 times less risky than Expro Group. It trades about 0.12 of its potential returns per unit of risk. Expro Group Holdings is currently generating about -0.14 per unit of risk. If you would invest 2,905 in Halliburton on August 29, 2024 and sell it today you would earn a total of 276.00 from holding Halliburton or generate 9.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Halliburton vs. Expro Group Holdings
Performance |
| Timeline |
| Halliburton |
| Expro Group Holdings |
Halliburton and Expro Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halliburton and Expro Group
The main advantage of trading using opposite Halliburton and Expro Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halliburton position performs unexpectedly, Expro Group 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 Expro Group will offset losses from the drop in Expro Group's long position.| Halliburton vs. Baker Hughes Co | Halliburton vs. NOV Inc | Halliburton vs. Tenaris SA ADR | Halliburton vs. Weatherford International PLC |
| Expro Group vs. ChampionX | Expro Group vs. Ranger Energy Services | Expro Group vs. Cactus Inc | Expro Group vs. MRC Global |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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