Correlation Between Enservco and Baker Hughes

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

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

Diversification Opportunities for Enservco and Baker Hughes

0.0

Correlation Coefficient

Enservco  Baker Hughes

Pay attention - limited upside

The 3 months correlation between Enservco and Baker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Enservco Co and Baker Hughes Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baker Hughes and Enservco 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 Enservco Co are associated (or correlated) with Baker Hughes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baker Hughes has no effect on the direction of Enservco i.e., Enservco and Baker Hughes go up and down completely randomly.

Pair Corralation between Enservco and Baker Hughes

If you would invest  4,074  in Baker Hughes Co on December 30, 2024 and sell it today you would earn a total of  234.00  from holding Baker Hughes Co or generate 5.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Enservco Co  vs.  Baker Hughes Co

Enservco

Risk-Adjusted Performance

Very Weak

Over the last 90 days Enservco Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Enservco is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Baker Hughes

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Baker Hughes Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward-looking signals, Baker Hughes may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Enservco and Baker Hughes

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

The idea behind Enservco Co and Baker Hughes Co 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.