Correlation Between PACCAR and HALLIBURTON
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By analyzing existing cross correlation between PACCAR Inc and HALLIBURTON 485 percent, you can compare the effects of market volatilities on PACCAR 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 PACCAR with a short position of HALLIBURTON. Check out your portfolio center. Please also check ongoing floating volatility patterns of PACCAR and HALLIBURTON.
Diversification Opportunities for PACCAR and HALLIBURTON
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PACCAR and HALLIBURTON is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding PACCAR Inc and HALLIBURTON 485 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HALLIBURTON 485 percent and PACCAR 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 PACCAR Inc 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 485 percent has no effect on the direction of PACCAR i.e., PACCAR and HALLIBURTON go up and down completely randomly.
Pair Corralation between PACCAR and HALLIBURTON
Given the investment horizon of 90 days PACCAR Inc is expected to generate 1.55 times more return on investment than HALLIBURTON. However, PACCAR is 1.55 times more volatile than HALLIBURTON 485 percent. It trades about 0.26 of its potential returns per unit of risk. HALLIBURTON 485 percent is currently generating about 0.02 per unit of risk. If you would invest 10,470 in PACCAR Inc on October 24, 2024 and sell it today you would earn a total of 563.00 from holding PACCAR Inc or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
PACCAR Inc vs. HALLIBURTON 485 percent
Performance |
| Timeline |
| PACCAR Inc |
| HALLIBURTON 485 percent |
PACCAR and HALLIBURTON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PACCAR and HALLIBURTON
The main advantage of trading using opposite PACCAR and HALLIBURTON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PACCAR 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.The idea behind PACCAR Inc and HALLIBURTON 485 percent pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| HALLIBURTON vs. KVH Industries | HALLIBURTON vs. NuRAN Wireless | HALLIBURTON vs. Q2 Holdings | HALLIBURTON vs. Rackspace Technology |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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