Correlation Between BAKER and One Liberty
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By analyzing existing cross correlation between BAKER HUGHES A and One Liberty Properties, you can compare the effects of market volatilities on BAKER and One Liberty 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 with a short position of One Liberty. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAKER and One Liberty.
Diversification Opportunities for BAKER and One Liberty
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between BAKER and One is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding BAKER HUGHES A and One Liberty Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Liberty Properties and BAKER 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 A are associated (or correlated) with One Liberty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Liberty Properties has no effect on the direction of BAKER i.e., BAKER and One Liberty go up and down completely randomly.
Pair Corralation between BAKER and One Liberty
Assuming the 90 days trading horizon BAKER HUGHES A is expected to under-perform the One Liberty. But the bond apears to be less risky and, when comparing its historical volatility, BAKER HUGHES A is 3.81 times less risky than One Liberty. The bond trades about 0.0 of its potential returns per unit of risk. The One Liberty Properties is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,036 in One Liberty Properties on October 4, 2024 and sell it today you would earn a total of 648.00 from holding One Liberty Properties or generate 31.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.19% |
Values | Daily Returns |
BAKER HUGHES A vs. One Liberty Properties
Performance |
Timeline |
BAKER HUGHES A |
One Liberty Properties |
BAKER and One Liberty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BAKER and One Liberty
The main advantage of trading using opposite BAKER and One Liberty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAKER position performs unexpectedly, One Liberty 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 One Liberty will offset losses from the drop in One Liberty's long position.The idea behind BAKER HUGHES A and One Liberty Properties 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.One Liberty vs. Generationome Properties | One Liberty vs. Modiv Inc | One Liberty vs. Armada Hflr Pr | One Liberty vs. NexPoint Diversified Real |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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