Correlation Between Baker Hughes and Uniper SE

Can any of the company-specific risk be diversified away by investing in both Baker Hughes and Uniper SE 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 Baker Hughes and Uniper SE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Baker Hughes Co and Uniper SE, you can compare the effects of market volatilities on Baker Hughes and Uniper SE 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 Baker Hughes with a short position of Uniper SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baker Hughes and Uniper SE.

Diversification Opportunities for Baker Hughes and Uniper SE

-0.5

Correlation Coefficient

Baker Hughes  Uniper SE

Very good diversification

The 3 months correlation between Baker and Uniper is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Baker Hughes Co and Uniper SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniper SE and Baker Hughes 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 Baker Hughes Co are associated (or correlated) with Uniper SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniper SE has no effect on the direction of Baker Hughes i.e., Baker Hughes and Uniper SE go up and down completely randomly.

Pair Corralation between Baker Hughes and Uniper SE

If you would invest  0.00  in Baker Hughes Co on October 14, 2024 and sell it today you would earn a total of  0.00  from holding Baker Hughes Co or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.4%
Values	Daily Returns

Baker Hughes Co  vs.  Uniper SE

Baker Hughes

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Baker Hughes Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively weak basic indicators, Baker Hughes unveiled solid returns over the last few months and may actually be approaching a breakup point.

Uniper SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Uniper SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Baker Hughes and Uniper SE

The main advantage of trading using opposite Baker Hughes and Uniper SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baker Hughes position performs unexpectedly, Uniper SE 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 Uniper SE will offset losses from the drop in Uniper SE's long position.

The idea behind Baker Hughes Co and Uniper SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.