Correlation Between Helmerich and Stifel Financial
Can any of the company-specific risk be diversified away by investing in both Helmerich and Stifel Financial 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 Stifel Financial 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 Stifel Financial, you can compare the effects of market volatilities on Helmerich and Stifel Financial 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 Stifel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helmerich and Stifel Financial.
Diversification Opportunities for Helmerich and Stifel Financial
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Helmerich and Stifel is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Helmerich and Payne and Stifel Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stifel Financial 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 Stifel Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stifel Financial has no effect on the direction of Helmerich i.e., Helmerich and Stifel Financial go up and down completely randomly.
Pair Corralation between Helmerich and Stifel Financial
Allowing for the 90-day total investment horizon Helmerich and Payne is expected to generate 3.75 times more return on investment than Stifel Financial. However, Helmerich is 3.75 times more volatile than Stifel Financial. It trades about 0.08 of its potential returns per unit of risk. Stifel Financial is currently generating about -0.07 per unit of risk. If you would invest 3,152 in Helmerich and Payne on August 31, 2024 and sell it today you would earn a total of 334.00 from holding Helmerich and Payne or generate 10.6% 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. Stifel Financial
Performance |
| Timeline |
| Helmerich and Payne |
| Stifel Financial |
Helmerich and Stifel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helmerich and Stifel Financial
The main advantage of trading using opposite Helmerich and Stifel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helmerich position performs unexpectedly, Stifel Financial 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 Stifel Financial will offset losses from the drop in Stifel Financial's long position.| Helmerich vs. Nabors Industries | Helmerich vs. Precision Drilling | Helmerich vs. Seadrill Limited | Helmerich vs. Patterson UTI Energy |
| Stifel Financial vs. Reinsurance Group of | Stifel Financial vs. Southern Co | Stifel Financial vs. DTE Energy Co | Stifel Financial vs. Georgia Power Co |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
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| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |