Correlation Between Helix Energy and Enerflex

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

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

Diversification Opportunities for Helix Energy and Enerflex

0.58

Correlation Coefficient

Helix Energy  Enerflex

Very weak diversification

The 3 months correlation between Helix and Enerflex is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Helix Energy Solutions and Enerflex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enerflex and Helix Energy 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 Helix Energy Solutions are associated (or correlated) with Enerflex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enerflex has no effect on the direction of Helix Energy i.e., Helix Energy and Enerflex go up and down completely randomly.

Pair Corralation between Helix Energy and Enerflex

Considering the 90-day investment horizon Helix Energy Solutions is expected to generate 1.11 times more return on investment than Enerflex. However, Helix Energy is 1.11 times more volatile than Enerflex. It trades about -0.03 of its potential returns per unit of risk. Enerflex is currently generating about -0.17 per unit of risk. If you would invest  917.00  in Helix Energy Solutions on December 29, 2024 and sell it today you would lose (63.00) from holding Helix Energy Solutions or give up 6.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Helix Energy Solutions  vs.  Enerflex

Helix Energy Solutions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Helix Energy Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Enerflex

Risk-Adjusted Performance

Very Weak

Over the last 90 days Enerflex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Helix Energy and Enerflex

The main advantage of trading using opposite Helix Energy and Enerflex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helix Energy position performs unexpectedly, Enerflex 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 Enerflex will offset losses from the drop in Enerflex's long position.

The idea behind Helix Energy Solutions and Enerflex 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.