Correlation Between Baker Hughes and Schlumberger
Can any of the company-specific risk be diversified away by investing in both Baker Hughes and Schlumberger 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 Baker Hughes and Schlumberger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baker Hughes Co and Schlumberger NV, you can compare the effects of market volatilities on Baker Hughes and Schlumberger 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 Baker Hughes with a short position of Schlumberger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baker Hughes and Schlumberger.
Diversification Opportunities for Baker Hughes and Schlumberger
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Baker and Schlumberger is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Baker Hughes Co and Schlumberger NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schlumberger NV and Baker Hughes 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 Baker Hughes Co are associated (or correlated) with Schlumberger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schlumberger NV has no effect on the direction of Baker Hughes i.e., Baker Hughes and Schlumberger go up and down completely randomly.
Pair Corralation between Baker Hughes and Schlumberger
Considering the 90-day investment horizon Baker Hughes Co is expected to generate 1.03 times more return on investment than Schlumberger. However, Baker Hughes is 1.03 times more volatile than Schlumberger NV. It trades about 0.16 of its potential returns per unit of risk. Schlumberger NV is currently generating about 0.0 per unit of risk. If you would invest 3,631 in Baker Hughes Co on May 7, 2025 and sell it today you would earn a total of 744.00 from holding Baker Hughes Co or generate 20.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Baker Hughes Co vs. Schlumberger NV
Performance |
Timeline |
Baker Hughes |
Schlumberger NV |
Baker Hughes and Schlumberger Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Baker Hughes and Schlumberger
The main advantage of trading using opposite Baker Hughes and Schlumberger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baker Hughes position performs unexpectedly, Schlumberger 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 Schlumberger will offset losses from the drop in Schlumberger's long position.Baker Hughes vs. Halliburton | Baker Hughes vs. Schlumberger NV | Baker Hughes vs. NOV Inc | Baker Hughes vs. Weatherford International PLC |
Schlumberger vs. Halliburton | Schlumberger vs. Baker Hughes Co | Schlumberger vs. NOV Inc | Schlumberger vs. Tenaris SA ADR |
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 the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |