Correlation Between BAXALTA and Newpark Resources
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By analyzing existing cross correlation between BAXALTA INC 525 and Newpark Resources, you can compare the effects of market volatilities on BAXALTA and Newpark Resources 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 BAXALTA with a short position of Newpark Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAXALTA and Newpark Resources.
Diversification Opportunities for BAXALTA and Newpark Resources
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BAXALTA and Newpark is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding BAXALTA INC 525 and Newpark Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newpark Resources and BAXALTA 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 BAXALTA INC 525 are associated (or correlated) with Newpark Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newpark Resources has no effect on the direction of BAXALTA i.e., BAXALTA and Newpark Resources go up and down completely randomly.
Pair Corralation between BAXALTA and Newpark Resources
Assuming the 90 days trading horizon BAXALTA INC 525 is expected to under-perform the Newpark Resources. But the bond apears to be less risky and, when comparing its historical volatility, BAXALTA INC 525 is 2.98 times less risky than Newpark Resources. The bond trades about -0.18 of its potential returns per unit of risk. The Newpark Resources is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 707.00 in Newpark Resources on September 12, 2024 and sell it today you would earn a total of 106.50 from holding Newpark Resources or generate 15.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 53.13% |
| Values | Daily Returns |
BAXALTA INC 525 vs. Newpark Resources
Performance |
| Timeline |
| BAXALTA INC 525 |
| Newpark Resources |
BAXALTA and Newpark Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAXALTA and Newpark Resources
The main advantage of trading using opposite BAXALTA and Newpark Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAXALTA position performs unexpectedly, Newpark Resources 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 Newpark Resources will offset losses from the drop in Newpark Resources' long position.| BAXALTA vs. Grupo Simec SAB | BAXALTA vs. Allegheny Technologies Incorporated | BAXALTA vs. Tianjin Capital Environmental | BAXALTA vs. CECO Environmental Corp |
| Newpark Resources vs. Now Inc | Newpark Resources vs. Enerflex | Newpark Resources vs. Bristow Group | Newpark Resources vs. Forum Energy Technologies |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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