Correlation Between Helmerich Payne and Sinopec Oilfield
Can any of the company-specific risk be diversified away by investing in both Helmerich Payne and Sinopec Oilfield 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 Payne and Sinopec Oilfield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helmerich Payne and Sinopec Oilfield Service, you can compare the effects of market volatilities on Helmerich Payne and Sinopec Oilfield 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 Payne with a short position of Sinopec Oilfield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helmerich Payne and Sinopec Oilfield.
Diversification Opportunities for Helmerich Payne and Sinopec Oilfield
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Helmerich and Sinopec is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Helmerich Payne and Sinopec Oilfield Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinopec Oilfield Service and Helmerich Payne 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 Payne are associated (or correlated) with Sinopec Oilfield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinopec Oilfield Service has no effect on the direction of Helmerich Payne i.e., Helmerich Payne and Sinopec Oilfield go up and down completely randomly.
Pair Corralation between Helmerich Payne and Sinopec Oilfield
Assuming the 90 days horizon Helmerich Payne is expected to generate 0.86 times more return on investment than Sinopec Oilfield. However, Helmerich Payne is 1.16 times less risky than Sinopec Oilfield. It trades about 0.12 of its potential returns per unit of risk. Sinopec Oilfield Service is currently generating about 0.01 per unit of risk. If you would invest 3,071 in Helmerich Payne on September 1, 2024 and sell it today you would earn a total of 219.00 from holding Helmerich Payne or generate 7.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helmerich Payne vs. Sinopec Oilfield Service
Performance |
| Timeline |
| Helmerich Payne |
| Sinopec Oilfield Service |
Helmerich Payne and Sinopec Oilfield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helmerich Payne and Sinopec Oilfield
The main advantage of trading using opposite Helmerich Payne and Sinopec Oilfield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helmerich Payne position performs unexpectedly, Sinopec Oilfield 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 Sinopec Oilfield will offset losses from the drop in Sinopec Oilfield's long position.| Helmerich Payne vs. ARDAGH METAL PACDL 0001 | Helmerich Payne vs. DAIRY FARM INTL | Helmerich Payne vs. PARKEN Sport Entertainment | Helmerich Payne vs. Granite Construction |
| Sinopec Oilfield vs. United Utilities Group | Sinopec Oilfield vs. SOUTHWEST AIRLINES | Sinopec Oilfield vs. Chesapeake Utilities | Sinopec Oilfield vs. Algonquin Power Utilities |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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