Correlation Between Grimoldi and Halliburton

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

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

Diversification Opportunities for Grimoldi and Halliburton

0.34

Correlation Coefficient

Grimoldi  Halliburton

Weak diversification

The 3 months correlation between Grimoldi and Halliburton is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Grimoldi SA and Halliburton Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and Grimoldi 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 Grimoldi SA are associated (or correlated) with Halliburton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halliburton has no effect on the direction of Grimoldi i.e., Grimoldi and Halliburton go up and down completely randomly.

Pair Corralation between Grimoldi and Halliburton

Assuming the 90 days trading horizon Grimoldi SA is expected to generate 1.54 times more return on investment than Halliburton. However, Grimoldi is 1.54 times more volatile than Halliburton Co. It trades about 0.05 of its potential returns per unit of risk. Halliburton Co is currently generating about 0.02 per unit of risk. If you would invest  131,500  in Grimoldi SA on December 25, 2024 and sell it today you would earn a total of  10,000  from holding Grimoldi SA or generate 7.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Grimoldi SA  vs.  Halliburton Co

Grimoldi SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Grimoldi SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Grimoldi may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Halliburton

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Halliburton Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong essential indicators, Halliburton is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Grimoldi and Halliburton

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

The idea behind Grimoldi SA and Halliburton 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.