Correlation Between Helmerich and Delek Logistics
Can any of the company-specific risk be diversified away by investing in both Helmerich and Delek Logistics 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 Logistics 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 Logistics Partners, you can compare the effects of market volatilities on Helmerich and Delek Logistics 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 Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helmerich and Delek Logistics.
Diversification Opportunities for Helmerich and Delek Logistics
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Helmerich and Delek is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Helmerich and Payne and Delek Logistics Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Logistics Partners 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 Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Logistics Partners has no effect on the direction of Helmerich i.e., Helmerich and Delek Logistics go up and down completely randomly.
Pair Corralation between Helmerich and Delek Logistics
Allowing for the 90-day total investment horizon Helmerich and Payne is expected to generate 3.1 times more return on investment than Delek Logistics. However, Helmerich is 3.1 times more volatile than Delek Logistics Partners. It trades about 0.15 of its potential returns per unit of risk. Delek Logistics Partners is currently generating about 0.33 per unit of risk. If you would invest 3,346 in Helmerich and Payne on August 27, 2024 and sell it today you would earn a total of 260.00 from holding Helmerich and Payne or generate 7.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helmerich and Payne vs. Delek Logistics Partners
Performance |
| Timeline |
| Helmerich and Payne |
| Delek Logistics Partners |
Helmerich and Delek Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helmerich and Delek Logistics
The main advantage of trading using opposite Helmerich and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helmerich position performs unexpectedly, Delek Logistics 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 Logistics will offset losses from the drop in Delek Logistics' long position.| Helmerich vs. Nabors Industries | Helmerich vs. Precision Drilling | Helmerich vs. Seadrill Limited | Helmerich vs. Patterson UTI Energy |
| Delek Logistics vs. CVR Energy | Delek Logistics vs. PBF Energy | Delek Logistics vs. HF Sinclair Corp | Delek Logistics vs. Par Pacific Holdings |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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