Correlation Between TechnipFMC Plc and Halliburton

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

Diversification Opportunities for TechnipFMC Plc and Halliburton

0.9
  Correlation Coefficient

Almost no diversification

The 3 months correlation between TechnipFMC and Halliburton is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding TechnipFMC Plc and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and TechnipFMC Plc 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 TechnipFMC Plc 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 TechnipFMC Plc i.e., TechnipFMC Plc and Halliburton go up and down completely randomly.

Pair Corralation between TechnipFMC Plc and Halliburton

Considering the 90-day investment horizon TechnipFMC Plc is expected to generate 0.89 times more return on investment than Halliburton. However, TechnipFMC Plc is 1.13 times less risky than Halliburton. It trades about -0.23 of its potential returns per unit of risk. Halliburton is currently generating about -0.24 per unit of risk. If you would invest  824.00  in TechnipFMC Plc on March 31, 2022 and sell it today you would lose (133.00)  from holding TechnipFMC Plc or give up 16.14% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy95.24%
ValuesDaily Returns

TechnipFMC Plc  vs.  Halliburton

 Performance (%) 
      Timeline 
TechnipFMC Plc 
TechnipFMC Performance
0 of 100
Over the last 90 days TechnipFMC Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest sluggish performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0168
Last Split Factor
1344:1000
Forward Annual Dividend Rate
0.13
Dividend Date
2020-04-08
Ex Dividend Date
2020-03-23
Last Split Date
2021-02-16

TechnipFMC 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 latest uncertain performance, the Stock's basic indicators remain steady and the new chaos on Wall Street may also be a sign of medium-term gains for the company stakeholders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0149
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

TechnipFMC Plc and Halliburton Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with TechnipFMC Plc and Halliburton

The main advantage of trading using opposite TechnipFMC Plc and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TechnipFMC Plc 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 TechnipFMC Plc 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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