Correlation Between Worley Parsons and Halliburton

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

Diversification Opportunities for Worley Parsons and Halliburton

0.45
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Worley and Halliburton is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Worley Parsons ADR and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton and Worley Parsons 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 Worley Parsons ADR 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 Worley Parsons i.e., Worley Parsons and Halliburton go up and down completely randomly.

Pair Corralation between Worley Parsons and Halliburton

Assuming the 90 days horizon Worley Parsons ADR is expected to under-perform the Halliburton. But the otc stock apears to be less risky and, when comparing its historical volatility, Worley Parsons ADR is 1.47 times less risky than Halliburton. The otc stock trades about -0.11 of its potential returns per unit of risk. The Halliburton is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  2,868  in Halliburton on July 9, 2022 and sell it today you would earn a total of  216.00  from holding Halliburton or generate 7.53% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy95.65%
ValuesDaily Returns

Worley Parsons ADR  vs.  Halliburton

 Performance (%) 
       Timeline  
Worley Parsons ADR 
Worley Performance
0 of 100
Over the last 90 days Worley Parsons ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Worley Price Channel

Halliburton 
Halliburton Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Halliburton are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively steady basic indicators, Halliburton is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Halliburton Price Channel

Worley Parsons and Halliburton Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Worley Parsons and Halliburton

The main advantage of trading using opposite Worley Parsons and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Worley Parsons 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.
Worley Parsons vs. Amazon Inc
The idea behind Worley Parsons ADR 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

Other Complementary Tools

Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go