Correlation Between Helix Energy and ProFrac Holding
Can any of the company-specific risk be diversified away by investing in both Helix Energy and ProFrac Holding 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 Helix Energy and ProFrac Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helix Energy Solutions and ProFrac Holding Corp, you can compare the effects of market volatilities on Helix Energy and ProFrac Holding 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 Helix Energy with a short position of ProFrac Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helix Energy and ProFrac Holding.
Diversification Opportunities for Helix Energy and ProFrac Holding
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Helix and ProFrac is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Helix Energy Solutions and ProFrac Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProFrac Holding Corp and Helix Energy 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 Helix Energy Solutions are associated (or correlated) with ProFrac Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProFrac Holding Corp has no effect on the direction of Helix Energy i.e., Helix Energy and ProFrac Holding go up and down completely randomly.
Pair Corralation between Helix Energy and ProFrac Holding
Considering the 90-day investment horizon Helix Energy Solutions is expected to generate 0.63 times more return on investment than ProFrac Holding. However, Helix Energy Solutions is 1.59 times less risky than ProFrac Holding. It trades about 0.06 of its potential returns per unit of risk. ProFrac Holding Corp is currently generating about -0.03 per unit of risk. If you would invest 597.00 in Helix Energy Solutions on August 28, 2024 and sell it today you would earn a total of 497.00 from holding Helix Energy Solutions or generate 83.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helix Energy Solutions vs. ProFrac Holding Corp
Performance |
| Timeline |
| Helix Energy Solutions |
| ProFrac Holding Corp |
Helix Energy and ProFrac Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helix Energy and ProFrac Holding
The main advantage of trading using opposite Helix Energy and ProFrac Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helix Energy position performs unexpectedly, ProFrac Holding 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 ProFrac Holding will offset losses from the drop in ProFrac Holding's long position.| Helix Energy vs. Oceaneering International | Helix Energy vs. Newpark Resources | Helix Energy vs. RPC Inc | Helix Energy vs. Oil States International |
| ProFrac Holding vs. Newpark Resources | ProFrac Holding vs. Natural Gas Services | ProFrac Holding vs. Geospace Technologies | ProFrac Holding vs. MRC Global |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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