Correlation Between Ledesma SAAI and Halliburton
Can any of the company-specific risk be diversified away by investing in both Ledesma SAAI and Halliburton 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 Ledesma SAAI and Halliburton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ledesma SAAI and Halliburton Co, you can compare the effects of market volatilities on Ledesma SAAI and Halliburton 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 Ledesma SAAI with a short position of Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ledesma SAAI and Halliburton.
Diversification Opportunities for Ledesma SAAI and Halliburton
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ledesma and Halliburton is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ledesma SAAI and Halliburton Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and Ledesma SAAI 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 Ledesma SAAI are associated (or correlated) with Halliburton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halliburton has no effect on the direction of Ledesma SAAI i.e., Ledesma SAAI and Halliburton go up and down completely randomly.
Pair Corralation between Ledesma SAAI and Halliburton
Assuming the 90 days trading horizon Ledesma SAAI is expected to generate 1.08 times more return on investment than Halliburton. However, Ledesma SAAI is 1.08 times more volatile than Halliburton Co. It trades about 0.02 of its potential returns per unit of risk. Halliburton Co is currently generating about -0.09 per unit of risk. If you would invest 148,000 in Ledesma SAAI on November 2, 2024 and sell it today you would earn a total of 500.00 from holding Ledesma SAAI or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ledesma SAAI vs. Halliburton Co
Performance |
| Timeline |
| Ledesma SAAI |
| Halliburton |
Ledesma SAAI and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ledesma SAAI and Halliburton
The main advantage of trading using opposite Ledesma SAAI and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ledesma SAAI position performs unexpectedly, Halliburton 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 Halliburton will offset losses from the drop in Halliburton's long position.| Ledesma SAAI vs. Harmony Gold Mining | Ledesma SAAI vs. Agrometal SAI | Ledesma SAAI vs. United States Steel | Ledesma SAAI vs. Compania de Transporte |
| Halliburton vs. Edesa Holding SA | Halliburton vs. Boldt SA | Halliburton vs. Agrometal SAI | Halliburton vs. United States Steel |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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