Correlation Between BAIDU and Patterson UTI
Specify exactly 2 symbols:
By analyzing existing cross correlation between BAIDU INC 4875 and Patterson UTI Energy, you can compare the effects of market volatilities on BAIDU and Patterson UTI 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 BAIDU with a short position of Patterson UTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAIDU and Patterson UTI.
Diversification Opportunities for BAIDU and Patterson UTI
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BAIDU and Patterson is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding BAIDU INC 4875 and Patterson UTI Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patterson UTI Energy and BAIDU 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 BAIDU INC 4875 are associated (or correlated) with Patterson UTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patterson UTI Energy has no effect on the direction of BAIDU i.e., BAIDU and Patterson UTI go up and down completely randomly.
Pair Corralation between BAIDU and Patterson UTI
Assuming the 90 days trading horizon BAIDU INC 4875 is expected to under-perform the Patterson UTI. But the bond apears to be less risky and, when comparing its historical volatility, BAIDU INC 4875 is 11.95 times less risky than Patterson UTI. The bond trades about -0.22 of its potential returns per unit of risk. The Patterson UTI Energy is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 779.00 in Patterson UTI Energy on August 30, 2024 and sell it today you would earn a total of 67.00 from holding Patterson UTI Energy or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 27.27% |
| Values | Daily Returns |
BAIDU INC 4875 vs. Patterson UTI Energy
Performance |
| Timeline |
| BAIDU INC 4875 |
| Patterson UTI Energy |
BAIDU and Patterson UTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAIDU and Patterson UTI
The main advantage of trading using opposite BAIDU and Patterson UTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAIDU position performs unexpectedly, Patterson UTI 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 Patterson UTI will offset losses from the drop in Patterson UTI's long position.| BAIDU vs. Kinetik Holdings | BAIDU vs. Tianjin Capital Environmental | BAIDU vs. Black Hills | BAIDU vs. PGE Corp |
| Patterson UTI vs. Nabors Industries | Patterson UTI vs. Precision Drilling | Patterson UTI vs. Noble plc | Patterson UTI vs. Helmerich and Payne |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |