Correlation Between Halliburton and Atlassian Cls

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Halliburton and Atlassian Cls 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 Halliburton and Atlassian Cls into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Halliburton and Atlassian Cls A, you can compare the effects of market volatilities on Halliburton and Atlassian Cls 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 Halliburton with a short position of Atlassian Cls. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halliburton and Atlassian Cls.

Diversification Opportunities for Halliburton and Atlassian Cls

-0.5
  Correlation Coefficient

Very good diversification

The 3 months correlation between Halliburton and Atlassian is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Halliburton and Atlassian Cls A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlassian Cls A and Halliburton 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 Halliburton are associated (or correlated) with Atlassian Cls. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlassian Cls A has no effect on the direction of Halliburton i.e., Halliburton and Atlassian Cls go up and down completely randomly.

Pair Corralation between Halliburton and Atlassian Cls

Considering the 90-day investment horizon Halliburton is expected to under-perform the Atlassian Cls. But the stock apears to be less risky and, when comparing its historical volatility, Halliburton is 1.45 times less risky than Atlassian Cls. The stock trades about -0.14 of its potential returns per unit of risk. The Atlassian Cls A is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  16,768  in Atlassian Cls A on May 15, 2022 and sell it today you would earn a total of  11,557  from holding Atlassian Cls A or generate 68.92% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Halliburton  vs.  Atlassian Cls A

 Performance (%) 
       Timeline  
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 weak performance in the last few months, the Stock's basic indicators remain relatively steady which may send shares a bit higher in September 2022. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

Halliburton Price Channel

Atlassian Cls A 
Atlassian Performance
13 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Atlassian Cls A are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively sluggish basic indicators, Atlassian Cls revealed solid returns over the last few months and may actually be approaching a breakup point.

Atlassian Price Channel

Halliburton and Atlassian Cls Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Halliburton and Atlassian Cls

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

Atlassian Cls A

Pair trading matchups for Atlassian Cls

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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

Other Complementary Tools

Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go