Correlation Between Halliburton and Nordon Indstrias
Can any of the company-specific risk be diversified away by investing in both Halliburton and Nordon Indstrias 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 Nordon Indstrias into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Halliburton and Nordon Indstrias Metalrgicas, you can compare the effects of market volatilities on Halliburton and Nordon Indstrias 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 Nordon Indstrias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halliburton and Nordon Indstrias.
Diversification Opportunities for Halliburton and Nordon Indstrias
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Halliburton and Nordon is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Halliburton and Nordon Indstrias Metalrgicas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordon Indstrias Met 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 Nordon Indstrias. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordon Indstrias Met has no effect on the direction of Halliburton i.e., Halliburton and Nordon Indstrias go up and down completely randomly.
Pair Corralation between Halliburton and Nordon Indstrias
Assuming the 90 days trading horizon Halliburton is expected to under-perform the Nordon Indstrias. In addition to that, Halliburton is 1.39 times more volatile than Nordon Indstrias Metalrgicas. It trades about -0.15 of its total potential returns per unit of risk. Nordon Indstrias Metalrgicas is currently generating about 0.02 per unit of volatility. If you would invest 660.00 in Nordon Indstrias Metalrgicas on October 14, 2024 and sell it today you would earn a total of 0.00 from holding Nordon Indstrias Metalrgicas or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Halliburton vs. Nordon Indstrias Metalrgicas
Performance |
| Timeline |
| Halliburton |
| Nordon Indstrias Met |
Halliburton and Nordon Indstrias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halliburton and Nordon Indstrias
The main advantage of trading using opposite Halliburton and Nordon Indstrias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halliburton position performs unexpectedly, Nordon Indstrias 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 Nordon Indstrias will offset losses from the drop in Nordon Indstrias' long position.| Halliburton vs. Eastman Chemical | Halliburton vs. Check Point Software | Halliburton vs. ON Semiconductor | Halliburton vs. Guidewire Software, |
| Nordon Indstrias vs. METISA Metalrgica Timboense | Nordon Indstrias vs. Lupatech SA | Nordon Indstrias vs. Refinaria de Petrleos | Nordon Indstrias vs. Electro Ao Altona |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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