Correlation Between ProFrac Holding and Helix Energy
Can any of the company-specific risk be diversified away by investing in both ProFrac Holding and Helix Energy 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 ProFrac Holding and Helix Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProFrac Holding Corp and Helix Energy Solutions, you can compare the effects of market volatilities on ProFrac Holding and Helix Energy 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 ProFrac Holding with a short position of Helix Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProFrac Holding and Helix Energy.
Diversification Opportunities for ProFrac Holding and Helix Energy
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ProFrac and Helix is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding ProFrac Holding Corp and Helix Energy Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helix Energy Solutions and ProFrac Holding 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 ProFrac Holding Corp are associated (or correlated) with Helix Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helix Energy Solutions has no effect on the direction of ProFrac Holding i.e., ProFrac Holding and Helix Energy go up and down completely randomly.
Pair Corralation between ProFrac Holding and Helix Energy
Given the investment horizon of 90 days ProFrac Holding Corp is expected to under-perform the Helix Energy. In addition to that, ProFrac Holding is 1.59 times more volatile than Helix Energy Solutions. It trades about -0.03 of its total potential returns per unit of risk. Helix Energy Solutions is currently generating about 0.06 per unit of volatility. If you would invest 618.00 in Helix Energy Solutions on August 24, 2024 and sell it today you would earn a total of 518.00 from holding Helix Energy Solutions or generate 83.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ProFrac Holding Corp vs. Helix Energy Solutions
Performance |
| Timeline |
| ProFrac Holding Corp |
| Helix Energy Solutions |
ProFrac Holding and Helix Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProFrac Holding and Helix Energy
The main advantage of trading using opposite ProFrac Holding and Helix Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProFrac Holding position performs unexpectedly, Helix Energy 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 Helix Energy will offset losses from the drop in Helix Energy's long position.| ProFrac Holding vs. Newpark Resources | ProFrac Holding vs. Natural Gas Services | ProFrac Holding vs. Geospace Technologies | ProFrac Holding vs. MRC Global |
| Helix Energy vs. Oceaneering International | Helix Energy vs. Newpark Resources | Helix Energy vs. RPC Inc | Helix Energy vs. Oil States International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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