Correlation Between Helix Energy and Enerflex
Can any of the company-specific risk be diversified away by investing in both Helix Energy and Enerflex 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 Enerflex 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 Enerflex, you can compare the effects of market volatilities on Helix Energy and Enerflex 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 Enerflex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helix Energy and Enerflex.
Diversification Opportunities for Helix Energy and Enerflex
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Helix and Enerflex is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Helix Energy Solutions and Enerflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerflex 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 Enerflex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enerflex has no effect on the direction of Helix Energy i.e., Helix Energy and Enerflex go up and down completely randomly.
Pair Corralation between Helix Energy and Enerflex
Considering the 90-day investment horizon Helix Energy Solutions is expected to under-perform the Enerflex. In addition to that, Helix Energy is 1.05 times more volatile than Enerflex. It trades about -0.1 of its total potential returns per unit of risk. Enerflex is currently generating about 0.25 per unit of volatility. If you would invest 565.00 in Enerflex on November 2, 2024 and sell it today you would earn a total of 406.00 from holding Enerflex or generate 71.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helix Energy Solutions vs. Enerflex
Performance |
| Timeline |
| Helix Energy Solutions |
| Enerflex |
Helix Energy and Enerflex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helix Energy and Enerflex
The main advantage of trading using opposite Helix Energy and Enerflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helix Energy position performs unexpectedly, Enerflex 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 Enerflex will offset losses from the drop in Enerflex's long position.| Helix Energy vs. Oceaneering International | Helix Energy vs. RPC Inc | Helix Energy vs. Oil States International | Helix Energy vs. TechnipFMC PLC |
| Enerflex vs. Natural Gas Services | Enerflex vs. Archrock | Enerflex vs. Geospace Technologies | Enerflex vs. Forum Energy Technologies |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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