Correlation Between Ideanomics and Halliburton

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

Diversification Opportunities for Ideanomics and Halliburton

0.48
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Ideanomics and Halliburton is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ideanomics and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and Ideanomics 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 Ideanomics 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 Ideanomics i.e., Ideanomics and Halliburton go up and down completely randomly.

Pair Corralation between Ideanomics and Halliburton

Given the investment horizon of 90 days Ideanomics is expected to under-perform the Halliburton. In addition to that, Ideanomics is 1.38 times more volatile than Halliburton. It trades about -0.58 of its total potential returns per unit of risk. Halliburton is currently generating about -0.26 per unit of volatility. If you would invest  3,035  in Halliburton on July 1, 2022 and sell it today you would lose (561.00)  from holding Halliburton or give up 18.48% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

Ideanomics  vs.  Halliburton

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

Ideanomics 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 conflicting performance in the last few months, the Stock's basic indicators remain relatively steady which may send shares a bit higher in October 2022. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

Halliburton Price Channel

Ideanomics and Halliburton Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ideanomics and Halliburton

The main advantage of trading using opposite Ideanomics and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ideanomics 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.
Ideanomics vs. Amazon Inc
The idea behind Ideanomics 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.
Halliburton vs. Amazon Inc
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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