Correlation Between Dolphin Entertainment and Baker Hughes

Can any of the company-specific risk be diversified away by investing in both Dolphin Entertainment and Baker Hughes 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 Dolphin Entertainment and Baker Hughes into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dolphin Entertainment and Baker Hughes, you can compare the effects of market volatilities on Dolphin Entertainment and Baker Hughes 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 Dolphin Entertainment with a short position of Baker Hughes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dolphin Entertainment and Baker Hughes.

Diversification Opportunities for Dolphin Entertainment and Baker Hughes

0.0

Correlation Coefficient

Dolphin Entertainment  Baker Hughes

Pay attention - limited upside

The 3 months correlation between Dolphin and Baker is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dolphin Entertainment and Baker Hughes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baker Hughes and Dolphin Entertainment 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 Dolphin Entertainment are associated (or correlated) with Baker Hughes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baker Hughes has no effect on the direction of Dolphin Entertainment i.e., Dolphin Entertainment and Baker Hughes go up and down completely randomly.

Pair Corralation between Dolphin Entertainment and Baker Hughes

If you would invest (100.00) in Baker Hughes on September 18, 2024 and sell it today you would earn a total of  100.00  from holding Baker Hughes or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Dolphin Entertainment  vs.  Baker Hughes

Dolphin Entertainment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dolphin Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Baker Hughes

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Baker Hughes has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, Baker Hughes is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Dolphin Entertainment and Baker Hughes

The main advantage of trading using opposite Dolphin Entertainment and Baker Hughes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dolphin Entertainment position performs unexpectedly, Baker Hughes 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 Baker Hughes will offset losses from the drop in Baker Hughes' long position.

The idea behind Dolphin Entertainment and Baker Hughes 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.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.