Correlation Between Talanx AG and Halliburton
Can any of the company-specific risk be diversified away by investing in both Talanx AG 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 Talanx AG and Halliburton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Talanx AG and Halliburton, you can compare the effects of market volatilities on Talanx AG 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 Talanx AG with a short position of Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Talanx AG and Halliburton.
Diversification Opportunities for Talanx AG and Halliburton
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Talanx and Halliburton is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Talanx AG and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and Talanx AG 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 Talanx AG 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 Talanx AG i.e., Talanx AG and Halliburton go up and down completely randomly.
Pair Corralation between Talanx AG and Halliburton
Assuming the 90 days horizon Talanx AG is expected to generate 0.76 times more return on investment than Halliburton. However, Talanx AG is 1.31 times less risky than Halliburton. It trades about 0.06 of its potential returns per unit of risk. Halliburton is currently generating about -0.06 per unit of risk. If you would invest 6,940 in Talanx AG on September 4, 2024 and sell it today you would earn a total of 1,025 from holding Talanx AG or generate 14.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.24% |
| Values | Daily Returns |
Talanx AG vs. Halliburton
Performance |
| Timeline |
| Talanx AG |
| Halliburton |
Talanx AG and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Talanx AG and Halliburton
The main advantage of trading using opposite Talanx AG and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Talanx AG 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.| Talanx AG vs. BJs Wholesale Club | Talanx AG vs. American Eagle Outfitters | Talanx AG vs. AEON STORES | Talanx AG vs. URBAN OUTFITTERS |
| Halliburton vs. Superior Plus Corp | Halliburton vs. NMI Holdings | Halliburton vs. Origin Agritech | Halliburton vs. SIVERS SEMICONDUCTORS AB |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |