Correlation Between NOV and Halliburton

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

Diversification Opportunities for NOV and Halliburton

0.57
  Correlation Coefficient

Very weak diversification

The 3 months correlation between NOV and Halliburton is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding NOV Inc and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and NOV 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 NOV Inc 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 NOV i.e., NOV and Halliburton go up and down completely randomly.

Pair Corralation between NOV and Halliburton

Considering the 90-day investment horizon NOV Inc is expected to generate 0.87 times more return on investment than Halliburton. However, NOV Inc is 1.15 times less risky than Halliburton. It trades about -0.08 of its potential returns per unit of risk. Halliburton is currently generating about -0.09 per unit of risk. If you would invest  1,808  in NOV Inc on July 3, 2022 and sell it today you would lose (190.00)  from holding NOV Inc or give up 10.51% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

NOV Inc  vs.  Halliburton

 Performance (%) 
       Timeline  
NOV Inc 
NOV Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in NOV Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, NOV is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

NOV 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 November 2022. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

Halliburton Price Channel

NOV and Halliburton Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with NOV and Halliburton

The main advantage of trading using opposite NOV and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NOV 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.
NOV vs. Amazon Inc
The idea behind NOV Inc 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Complementary Tools

Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go