Correlation Between Cactus and Helix Energy
Can any of the company-specific risk be diversified away by investing in both Cactus and Helix 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 Cactus and Helix Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cactus Inc and Helix Energy Solutions, you can compare the effects of market volatilities on Cactus and Helix 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 Cactus with a short position of Helix Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cactus and Helix Energy.
Diversification Opportunities for Cactus and Helix Energy
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cactus and Helix is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cactus Inc and Helix Energy Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helix Energy Solutions and Cactus 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 Cactus Inc are associated (or correlated) with Helix Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helix Energy Solutions has no effect on the direction of Cactus i.e., Cactus and Helix Energy go up and down completely randomly.
Pair Corralation between Cactus and Helix Energy
Considering the 90-day investment horizon Cactus is expected to generate 1.58 times less return on investment than Helix Energy. But when comparing it to its historical volatility, Cactus Inc is 1.04 times less risky than Helix Energy. It trades about 0.04 of its potential returns per unit of risk. Helix Energy Solutions is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 597.00 in Helix Energy Solutions on August 28, 2024 and sell it today you would earn a total of 497.00 from holding Helix Energy Solutions or generate 83.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cactus Inc vs. Helix Energy Solutions
Performance |
| Timeline |
| Cactus Inc |
| Helix Energy Solutions |
Cactus and Helix Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cactus and Helix Energy
The main advantage of trading using opposite Cactus and Helix Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cactus position performs unexpectedly, Helix 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 Helix Energy will offset losses from the drop in Helix Energy's long position.| Cactus vs. ChampionX | Cactus vs. Expro Group Holdings | Cactus vs. Ranger Energy Services | Cactus vs. MRC Global |
| Helix Energy vs. Oceaneering International | Helix Energy vs. Newpark Resources | Helix Energy vs. RPC Inc | Helix Energy vs. Oil States International |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |