Correlation Between Helix Acquisition and SBM Offshore
Can any of the company-specific risk be diversified away by investing in both Helix Acquisition and SBM Offshore 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 Acquisition and SBM Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helix Acquisition Corp and SBM Offshore NV, you can compare the effects of market volatilities on Helix Acquisition and SBM Offshore 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 Acquisition with a short position of SBM Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helix Acquisition and SBM Offshore.
Diversification Opportunities for Helix Acquisition and SBM Offshore
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Helix and SBM is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Helix Acquisition Corp and SBM Offshore NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBM Offshore NV and Helix Acquisition 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 Acquisition Corp are associated (or correlated) with SBM Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBM Offshore NV has no effect on the direction of Helix Acquisition i.e., Helix Acquisition and SBM Offshore go up and down completely randomly.
Pair Corralation between Helix Acquisition and SBM Offshore
Given the investment horizon of 90 days Helix Acquisition is expected to generate 61.13 times less return on investment than SBM Offshore. But when comparing it to its historical volatility, Helix Acquisition Corp is 13.65 times less risky than SBM Offshore. It trades about 0.05 of its potential returns per unit of risk. SBM Offshore NV is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,743 in SBM Offshore NV on November 28, 2024 and sell it today you would earn a total of 532.00 from holding SBM Offshore NV or generate 30.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helix Acquisition Corp vs. SBM Offshore NV
Performance |
| Timeline |
| Helix Acquisition Corp |
| SBM Offshore NV |
Helix Acquisition and SBM Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helix Acquisition and SBM Offshore
The main advantage of trading using opposite Helix Acquisition and SBM Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helix Acquisition position performs unexpectedly, SBM Offshore 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 SBM Offshore will offset losses from the drop in SBM Offshore's long position.| Helix Acquisition vs. Primo Brands | Helix Acquisition vs. Compania Cervecerias Unidas | Helix Acquisition vs. Canada Goose Holdings | Helix Acquisition vs. Rocky Brands |
| SBM Offshore vs. Expro Group Holdings | SBM Offshore vs. ChampionX | SBM Offshore vs. Ranger Energy Services | SBM Offshore vs. Cactus Inc |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |