Correlation Between Crescent Energy and Halliburton

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Can any of the company-specific risk be diversified away by investing in both Crescent Energy 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 Crescent Energy and Halliburton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crescent Energy and Halliburton, you can compare the effects of market volatilities on Crescent Energy 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 Crescent Energy with a short position of Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crescent Energy and Halliburton.

Diversification Opportunities for Crescent Energy and Halliburton

0.93
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Crescent and Halliburton is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Crescent Energy and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and Crescent Energy 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 Crescent Energy 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 Crescent Energy i.e., Crescent Energy and Halliburton go up and down completely randomly.

Pair Corralation between Crescent Energy and Halliburton

Given the investment horizon of 90 days Crescent Energy is expected to under-perform the Halliburton. In addition to that, Crescent Energy is 1.26 times more volatile than Halliburton. It trades about -0.03 of its total potential returns per unit of risk. Halliburton is currently generating about 0.05 per unit of volatility. If you would invest  2,400  in Halliburton on April 5, 2022 and sell it today you would earn a total of  743.00  from holding Halliburton or generate 30.96% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy52.96%
ValuesDaily Returns

Crescent Energy  vs.  Halliburton

 Performance (%) 
      Timeline 
Crescent Energy 
Crescent Performance
0 of 100
Over the last 90 days Crescent Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in August 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0532
Payout Ratio
0.15
Forward Annual Dividend Rate
0.68
Dividend Date
2022-06-07
Ex Dividend Date
2022-05-23

Crescent Price Channel

Halliburton 
Halliburton Performance
0 of 100
Over the last 90 days Halliburton has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively steady which may send shares a bit higher in August 2022. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0153
Payout Ratio
0.26
Last Split Factor
2:1
Forward Annual Dividend Rate
0.48
Dividend Date
2022-06-22
Ex Dividend Date
2022-05-31
Last Split Date
2006-07-17

Halliburton Price Channel

Crescent Energy and Halliburton Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Crescent Energy and Halliburton

The main advantage of trading using opposite Crescent Energy and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crescent Energy 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.

Crescent Energy

Pair trading matchups for Crescent Energy

The idea behind Crescent Energy 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.
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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