Correlation Between Enservco and Helix Energy

Can any of the company-specific risk be diversified away by investing in both Enservco 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 Enservco and Helix Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Enservco Co and Helix Energy Solutions, you can compare the effects of market volatilities on Enservco 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 Enservco with a short position of Helix Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enservco and Helix Energy.

Diversification Opportunities for Enservco and Helix Energy

-0.05

Correlation Coefficient

Enservco  Helix Energy

Good diversification

The 3 months correlation between Enservco and Helix is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Enservco Co 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 Enservco 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 Enservco Co 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 Enservco i.e., Enservco and Helix Energy go up and down completely randomly.

Pair Corralation between Enservco and Helix Energy

Given the investment horizon of 90 days Enservco Co is expected to under-perform the Helix Energy. In addition to that, Enservco is 4.42 times more volatile than Helix Energy Solutions. It trades about -0.11 of its total potential returns per unit of risk. Helix Energy Solutions is currently generating about 0.04 per unit of volatility. If you would invest  944.00  in Helix Energy Solutions on September 12, 2024 and sell it today you would earn a total of  42.00  from holding Helix Energy Solutions or generate 4.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	65.08%
Values	Daily Returns

Enservco Co  vs.  Helix Energy Solutions

Enservco

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Enservco Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Helix Energy Solutions

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Helix Energy Solutions are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong essential indicators, Helix Energy is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Enservco and Helix Energy

The main advantage of trading using opposite Enservco and Helix Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enservco 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.

The idea behind Enservco Co and Helix Energy Solutions pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.