Correlation Between Helix Energy and MRC Global
Can any of the company-specific risk be diversified away by investing in both Helix Energy and MRC Global 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 MRC Global 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 MRC Global, you can compare the effects of market volatilities on Helix Energy and MRC Global 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 MRC Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helix Energy and MRC Global.
Diversification Opportunities for Helix Energy and MRC Global
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Helix and MRC is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Helix Energy Solutions and MRC Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MRC Global 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 MRC Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MRC Global has no effect on the direction of Helix Energy i.e., Helix Energy and MRC Global go up and down completely randomly.
Pair Corralation between Helix Energy and MRC Global
Considering the 90-day investment horizon Helix Energy Solutions is expected to generate 0.7 times more return on investment than MRC Global. However, Helix Energy Solutions is 1.42 times less risky than MRC Global. It trades about 0.3 of its potential returns per unit of risk. MRC Global is currently generating about 0.18 per unit of risk. If you would invest 952.00 in Helix Energy Solutions on August 24, 2024 and sell it today you would earn a total of 167.00 from holding Helix Energy Solutions or generate 17.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helix Energy Solutions vs. MRC Global
Performance |
| Timeline |
| Helix Energy Solutions |
| MRC Global |
Helix Energy and MRC Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helix Energy and MRC Global
The main advantage of trading using opposite Helix Energy and MRC Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helix Energy position performs unexpectedly, MRC Global 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 MRC Global will offset losses from the drop in MRC Global's long position.| Helix Energy vs. Oceaneering International | Helix Energy vs. Newpark Resources | Helix Energy vs. RPC Inc | Helix Energy vs. Oil States International |
| MRC Global vs. NOV Inc | MRC Global vs. Ranger Energy Services | MRC Global vs. Oil States International | MRC Global vs. Geospace 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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