Correlation Between Baker Hughes and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both Baker Hughes and Halyk Bank 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 Halyk Bank 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 Halyk Bank of, you can compare the effects of market volatilities on Baker Hughes and Halyk Bank 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 Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baker Hughes and Halyk Bank.
Diversification Opportunities for Baker Hughes and Halyk Bank
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Baker and Halyk is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Baker Hughes Co and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank 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 Halyk Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halyk Bank has no effect on the direction of Baker Hughes i.e., Baker Hughes and Halyk Bank go up and down completely randomly.
Pair Corralation between Baker Hughes and Halyk Bank
Assuming the 90 days trading horizon Baker Hughes is expected to generate 1.27 times less return on investment than Halyk Bank. In addition to that, Baker Hughes is 1.12 times more volatile than Halyk Bank of. It trades about 0.12 of its total potential returns per unit of risk. Halyk Bank of is currently generating about 0.17 per unit of volatility. If you would invest 1,637 in Halyk Bank of on October 13, 2024 and sell it today you would earn a total of 327.00 from holding Halyk Bank of or generate 19.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.44% |
Values | Daily Returns |
Baker Hughes Co vs. Halyk Bank of
Performance |
Timeline |
Baker Hughes |
Halyk Bank |
Baker Hughes and Halyk Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Baker Hughes and Halyk Bank
The main advantage of trading using opposite Baker Hughes and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baker Hughes position performs unexpectedly, Halyk Bank 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 Halyk Bank will offset losses from the drop in Halyk Bank's long position.Baker Hughes vs. Lundin Mining Corp | ||
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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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