Correlation Between Hemogenyx Pharmaceuticals and Baker Hughes
Can any of the company-specific risk be diversified away by investing in both Hemogenyx Pharmaceuticals and Baker Hughes 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 Hemogenyx Pharmaceuticals and Baker Hughes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hemogenyx Pharmaceuticals PLC and Baker Hughes Co, you can compare the effects of market volatilities on Hemogenyx Pharmaceuticals and Baker Hughes 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 Hemogenyx Pharmaceuticals with a short position of Baker Hughes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hemogenyx Pharmaceuticals and Baker Hughes.
Diversification Opportunities for Hemogenyx Pharmaceuticals and Baker Hughes
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hemogenyx and Baker is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Hemogenyx Pharmaceuticals PLC and Baker Hughes Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baker Hughes and Hemogenyx Pharmaceuticals 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 Hemogenyx Pharmaceuticals PLC are associated (or correlated) with Baker Hughes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baker Hughes has no effect on the direction of Hemogenyx Pharmaceuticals i.e., Hemogenyx Pharmaceuticals and Baker Hughes go up and down completely randomly.
Pair Corralation between Hemogenyx Pharmaceuticals and Baker Hughes
Assuming the 90 days trading horizon Hemogenyx Pharmaceuticals PLC is expected to generate 37.08 times more return on investment than Baker Hughes. However, Hemogenyx Pharmaceuticals is 37.08 times more volatile than Baker Hughes Co. It trades about 0.05 of its potential returns per unit of risk. Baker Hughes Co is currently generating about 0.09 per unit of risk. If you would invest 88,000 in Hemogenyx Pharmaceuticals PLC on October 10, 2024 and sell it today you would lose (49,250) from holding Hemogenyx Pharmaceuticals PLC or give up 55.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Hemogenyx Pharmaceuticals PLC vs. Baker Hughes Co
Performance |
| Timeline |
| Hemogenyx Pharmaceuticals |
| Baker Hughes |
Hemogenyx Pharmaceuticals and Baker Hughes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hemogenyx Pharmaceuticals and Baker Hughes
The main advantage of trading using opposite Hemogenyx Pharmaceuticals and Baker Hughes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hemogenyx Pharmaceuticals position performs unexpectedly, Baker Hughes 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 Baker Hughes will offset losses from the drop in Baker Hughes' long position.| Hemogenyx Pharmaceuticals vs. Elmos Semiconductor SE | Hemogenyx Pharmaceuticals vs. Zoom Video Communications | Hemogenyx Pharmaceuticals vs. Cars Inc | Hemogenyx Pharmaceuticals vs. Cellnex Telecom SA |
| Baker Hughes vs. Kaufman Et Broad | Baker Hughes vs. Eastinco Mining Exploration | Baker Hughes vs. Beowulf Mining | Baker Hughes vs. GoldMining |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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