Correlation Between SOI Old and Halliburton

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

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

Diversification Opportunities for SOI Old and Halliburton

0.0

Correlation Coefficient

SOI Old  Halliburton

Pay attention - limited upside

The 3 months correlation between SOI and Halliburton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SOI Old and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and SOI Old 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 SOI Old 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 SOI Old i.e., SOI Old and Halliburton go up and down completely randomly.

Pair Corralation between SOI Old and Halliburton

If you would invest (100.00) in SOI Old on December 30, 2024 and sell it today you would earn a total of  100.00  from holding SOI Old or generate -100.0% return on investment over 90 days.

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

SOI Old  vs.  Halliburton

SOI Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days SOI Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, SOI Old is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Halliburton

Risk-Adjusted Performance

Very Weak

Over the last 90 days Halliburton has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Halliburton is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with SOI Old and Halliburton

The main advantage of trading using opposite SOI Old and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOI Old 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 SOI Old and Halliburton 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 Transaction History module to view history of all your transactions and understand their impact on performance.