Halliburton Stock Volatility

HAL -  USA Stock  

USD 36.70  2.08  5.36%

Halliburton appears to be very steady, given 3 months investment horizon. Halliburton holds Efficiency (Sharpe) Ratio of 0.0738, which attests that the entity had 0.0738% of return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-six technical indicators for Halliburton, which you can use to evaluate the future volatility of the firm. Please utilize Halliburton's Downside Deviation of 3.79, risk adjusted performance of 0.1592, and Market Risk Adjusted Performance of 0.5281 to validate if our risk estimates are consistent with your expectations.
  
Refresh
Halliburton Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Halliburton daily returns, and it is calculated using variance and standard deviation. We also use Halliburton's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Halliburton volatility.

180 Days Market Risk

Very steady

Chance of Distress

180 Days Economic Sensitivity

Responds to the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Halliburton can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Halliburton at lower prices. For example, an investor can purchase Halliburton stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Halliburton's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with Halliburton

0.93CRGYCrescent EnergyPairCorr
0.92CNQCanadian Natural ResPairCorr
0.89FTITechnipFMC PlcPairCorr
0.88AMAntero Midstream CorpPairCorr
0.88AROCArchrockPairCorr
0.87EQNREquinor ASA ADRPairCorr

Moving against Halliburton

-0.68FPPPFIELDPOINT PETROLEUM CORPPairCorr
-0.67GEORGEOPETRO RESOURCEPairCorr

Halliburton Market Sensitivity And Downside Risk

Halliburton's beta coefficient measures the volatility of Halliburton stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Halliburton stock's returns against your selected market. In other words, Halliburton's beta of 0.71 provides an investor with an approximation of how much risk Halliburton stock can potentially add to one of your existing portfolios.
Let's try to break down what Halliburton's beta means in this case. As returns on the market increase, Halliburton returns are expected to increase less than the market. However, during the bear market, the loss on holding Halliburton will be expected to be smaller as well.
3 Months Beta |Analyze Halliburton Demand Trend
Check current 90 days Halliburton correlation with market (DOW)

Halliburton Beta

    
  0.71  
Halliburton standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  3.42  
It is essential to understand the difference between upside risk (as represented by Halliburton's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Halliburton stock's daily returns or price. Since the actual investment returns on holding a position in Halliburton stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Halliburton.

Halliburton Implied Volatility

    
  56.81  
Halliburton's implied volatility exposes the market's sentiment of Halliburton stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Halliburton's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Halliburton stock will not fluctuate a lot when Halliburton's options are near their expiration.

Halliburton Stock Volatility Analysis

Volatility refers to the frequency at which Halliburton stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Halliburton's price changes. Investors will then calculate the volatility of Halliburton's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Halliburton's volatility:

Historical Volatility

This type of stock volatility measures Halliburton's fluctuations based on previous trends. It's commonly used to predict Halliburton's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Halliburton's current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Developed by Larry Williams, the Weighted Close is the average of Halliburton high, low and close of a chart with the close values weighted twice. It can be used to smooth an indicator that normally takes only Halliburton closing price as input.
.

Halliburton Projected Return Density Against Market

Considering the 90-day investment horizon Halliburton has a beta of 0.7092 . This usually indicates as returns on the market go up, Halliburton average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Halliburton will be expected to be much smaller as well.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Halliburton or Energy sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Halliburton stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Halliburton stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has an alpha of 0.4164, implying that it can generate a 0.42 percent excess return over DOW after adjusting for the inherited market risk (beta).
 Predicted Return Density 
      Returns 
Halliburton's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Halliburton stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Company's Stock Price Volatility?

Several factors can influence a company's stock volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Halliburton Stock Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Halliburton or Energy sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Halliburton stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Halliburton stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Considering the 90-day investment horizon the coefficient of variation of Halliburton is 1354.79. The daily returns are distributed with a variance of 11.7 and standard deviation of 3.42. The mean deviation of Halliburton is currently at 2.66. For similar time horizon, the selected benchmark (DOW) has volatility of 1.35
α
Alpha over DOW
0.42
β
Beta against DOW0.71
σ
Overall volatility
3.42
Ir
Information ratio 0.13

Halliburton Stock Return Volatility

Halliburton historical daily return volatility represents how much Halliburton stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The company has volatility of 3.421% on return distribution over 90 days investment horizon. By contrast, DOW inherits 1.3574% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About Halliburton Volatility

Volatility is a rate at which the price of Halliburton or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Halliburton may increase or decrease. In other words, similar to Halliburton's beta indicator, it measures the risk of Halliburton and helps estimate the fluctuations that may happen in a short period of time. So if prices of Halliburton fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for 2022
Market Capitalization20.5 B23.8 B
Halliburton Company provides products and services to the energy industry worldwide. Halliburton Company was founded in 1919 and is based in Houston, Texas. Halliburton operates under Oil Gas Equipment Services classification in the United States and is traded on New York Stock Exchange. It employs 40000 people.

Nearest Halliburton long CALL Option Payoff at Expiration

Halliburton's implied volatility is one of the determining factors in the pricing options written on Halliburton. Implied volatility approximates the future value of Halliburtonusing the option's current value. Options with high implied volatility have higher premiums and can be used to hedge the downside of investing in Halliburton over a specific time period.
View All Halliburton options
2022-05-27 CALL at $20.0 is a CALL option contract on Halliburton's common stock with a strick price of 20.0 expiring on 2022-05-27. The contract was not traded in recent days and, as of today, has 1 days remaining before the expiration. The option is currently trading at a bid price of $18.55, and an ask price of $18.75. The implied volatility as of the 26th of May is 415.7314.
 Profit 
Share
      Halliburton Price At Expiration 

Halliburton Investment Opportunity

Halliburton has a volatility of 3.42 and is 2.51 times more volatile than DOW. 29  of all equities and portfolios are less risky than Halliburton. Compared to the overall equity markets, volatility of historical daily returns of Halliburton is lower than 29 () of all global equities and portfolios over the last 90 days. Use Halliburton to protect your portfolios against small market fluctuations. The stock experiences a very speculative upward sentiment. Check odds of Halliburton to be traded at $34.87 in 90 days. . Let's try to break down what Halliburton's beta means in this case. As returns on the market increase, Halliburton returns are expected to increase less than the market. However, during the bear market, the loss on holding Halliburton will be expected to be smaller as well.

Modest diversification

The correlation between Halliburton and DJI is Modest diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Halliburton and DJI in the same portfolio, assuming nothing else is changed.

Halliburton Additional Risk Indicators

The analysis of Halliburton's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Halliburton's investment and either accepting that risk or mitigating it. Along with some common measures of Halliburton stock risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Risk Adjusted Performance0.1592
Market Risk Adjusted Performance0.5281
Mean Deviation2.54
Semi Deviation3.59
Downside Deviation3.79
Coefficient Of Variation879.01
Standard Deviation3.32
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Halliburton Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
BANK OF NINGBO vs. Halliburton
Otp Bank vs. Halliburton
FUJIAN AONONG vs. Halliburton
Visa vs. Halliburton
Vmware vs. Halliburton
Ford vs. Halliburton
Citigroup vs. Halliburton
Meta Platforms vs. Halliburton
Sentinelone Inc vs. Halliburton
Salesforce vs. Halliburton
COSCO SHIPPING vs. Halliburton
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Halliburton as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Halliburton's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Halliburton's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Halliburton.
Please check Risk vs Return Analysis. Note that the Halliburton information on this page should be used as a complementary analysis to other Halliburton's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Transaction History module to view history of all your transactions and understand their impact on performance.

Complementary Tools for Halliburton Stock analysis

When running Halliburton price analysis, check to measure Halliburton's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Halliburton is operating at the current time. Most of Halliburton's value examination focuses on studying past and present price action to predict the probability of Halliburton's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Halliburton's price. Additionally, you may evaluate how the addition of Halliburton to your portfolios can decrease your overall portfolio volatility.
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
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
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Is Halliburton's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Halliburton. If investors know Halliburton will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Halliburton listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Halliburton is measured differently than its book value, which is the value of Halliburton that is recorded on the company's balance sheet. Investors also form their own opinion of Halliburton's value that differs from its market value or its book value, called intrinsic value, which is Halliburton's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Halliburton's market value can be influenced by many factors that don't directly affect Halliburton's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Halliburton's value and its price as these two are different measures arrived at by different means. Investors typically determine Halliburton value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Halliburton's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.