Correlation Between TechnipFMC Plc and Halliburton
Can any of the company-specific risk be diversified away by investing in both TechnipFMC Plc 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 TechnipFMC Plc and Halliburton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TechnipFMC plc and Halliburton, you can compare the effects of market volatilities on TechnipFMC Plc 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 TechnipFMC Plc with a short position of Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of TechnipFMC Plc and Halliburton.
Diversification Opportunities for TechnipFMC Plc and Halliburton
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TechnipFMC and Halliburton is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding TechnipFMC plc and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and TechnipFMC Plc 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 TechnipFMC plc 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 TechnipFMC Plc i.e., TechnipFMC Plc and Halliburton go up and down completely randomly.
Pair Corralation between TechnipFMC Plc and Halliburton
Assuming the 90 days trading horizon TechnipFMC plc is expected to generate 0.34 times more return on investment than Halliburton. However, TechnipFMC plc is 2.93 times less risky than Halliburton. It trades about 0.06 of its potential returns per unit of risk. Halliburton is currently generating about -0.15 per unit of risk. If you would invest 18,867 in TechnipFMC plc on October 14, 2024 and sell it today you would earn a total of 297.00 from holding TechnipFMC plc or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TechnipFMC plc vs. Halliburton
Performance |
| Timeline |
| TechnipFMC plc |
| Halliburton |
TechnipFMC Plc and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TechnipFMC Plc and Halliburton
The main advantage of trading using opposite TechnipFMC Plc and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TechnipFMC Plc 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.| TechnipFMC Plc vs. JB Hunt Transport | TechnipFMC Plc vs. Zoom Video Communications | TechnipFMC Plc vs. Pure Storage, | TechnipFMC Plc vs. Warner Music Group |
| Halliburton vs. Schlumberger Limited | Halliburton vs. TechnipFMC plc | Halliburton vs. Energisa SA | Halliburton vs. BTG Pactual Logstica |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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