Correlation Between Helmerich and Delek Energy
Can any of the company-specific risk be diversified away by investing in both Helmerich and Delek 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 Helmerich and Delek Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helmerich and Payne and Delek Energy, you can compare the effects of market volatilities on Helmerich and Delek 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 Helmerich with a short position of Delek Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helmerich and Delek Energy.
Diversification Opportunities for Helmerich and Delek Energy
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Helmerich and Delek is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Helmerich and Payne and Delek Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Energy and Helmerich 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 Helmerich and Payne are associated (or correlated) with Delek Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Energy has no effect on the direction of Helmerich i.e., Helmerich and Delek Energy go up and down completely randomly.
Pair Corralation between Helmerich and Delek Energy
Allowing for the 90-day total investment horizon Helmerich is expected to generate 9.33 times less return on investment than Delek Energy. But when comparing it to its historical volatility, Helmerich and Payne is 1.24 times less risky than Delek Energy. It trades about 0.02 of its potential returns per unit of risk. Delek Energy is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,689 in Delek Energy on August 23, 2024 and sell it today you would earn a total of 150.00 from holding Delek Energy or generate 8.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helmerich and Payne vs. Delek Energy
Performance |
| Timeline |
| Helmerich and Payne |
| Delek Energy |
Helmerich and Delek Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helmerich and Delek Energy
The main advantage of trading using opposite Helmerich and Delek Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helmerich position performs unexpectedly, Delek 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 Delek Energy will offset losses from the drop in Delek Energy's long position.| Helmerich vs. Nabors Industries | Helmerich vs. Precision Drilling | Helmerich vs. Seadrill Limited | Helmerich vs. Patterson UTI Energy |
| Delek Energy vs. Crossamerica Partners LP | Delek Energy vs. Sunoco LP | Delek Energy vs. CVR Energy | Delek Energy vs. Phillips 66 |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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