Correlation Between Transportadora and Halliburton
Can any of the company-specific risk be diversified away by investing in both Transportadora 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 Transportadora and Halliburton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transportadora de Gas and Halliburton Co, you can compare the effects of market volatilities on Transportadora 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 Transportadora with a short position of Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transportadora and Halliburton.
Diversification Opportunities for Transportadora and Halliburton
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Transportadora and Halliburton is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Transportadora de Gas and Halliburton Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and Transportadora 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 Transportadora de Gas 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 Transportadora i.e., Transportadora and Halliburton go up and down completely randomly.
Pair Corralation between Transportadora and Halliburton
Assuming the 90 days trading horizon Transportadora de Gas is expected to generate 0.88 times more return on investment than Halliburton. However, Transportadora de Gas is 1.14 times less risky than Halliburton. It trades about 0.34 of its potential returns per unit of risk. Halliburton Co is currently generating about 0.11 per unit of risk. If you would invest 548,000 in Transportadora de Gas on September 5, 2024 and sell it today you would earn a total of 106,000 from holding Transportadora de Gas or generate 19.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transportadora de Gas vs. Halliburton Co
Performance |
| Timeline |
| Transportadora de Gas |
| Halliburton |
Transportadora and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transportadora and Halliburton
The main advantage of trading using opposite Transportadora and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transportadora 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.| Transportadora vs. Compania de Transporte | Transportadora vs. United States Steel | Transportadora vs. Telecom Argentina | Transportadora vs. Agrometal SAI |
| Halliburton vs. Camuzzi Gas Pampeana | Halliburton vs. Metrogas SA | Halliburton vs. American Express Co | Halliburton vs. QUALCOMM Incorporated |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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