Correlation Between Helix Energy and Enservco

Can any of the company-specific risk be diversified away by investing in both Helix Energy and Enservco 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 Enservco 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 Enservco Co, you can compare the effects of market volatilities on Helix Energy and Enservco 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 Enservco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helix Energy and Enservco.

Diversification Opportunities for Helix Energy and Enservco

-0.05

Correlation Coefficient

Helix Energy  Enservco

Good diversification

The 3 months correlation between Helix and Enservco is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Helix Energy Solutions and Enservco Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enservco 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 Enservco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enservco has no effect on the direction of Helix Energy i.e., Helix Energy and Enservco go up and down completely randomly.

Pair Corralation between Helix Energy and Enservco

Considering the 90-day investment horizon Helix Energy Solutions is expected to generate 0.23 times more return on investment than Enservco. However, Helix Energy Solutions is 4.42 times less risky than Enservco. It trades about 0.04 of its potential returns per unit of risk. Enservco Co is currently generating about -0.11 per unit of risk. 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

Helix Energy Solutions  vs.  Enservco Co

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.

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.

Pair Trading with Helix Energy and Enservco

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

The idea behind Helix Energy Solutions and Enservco Co 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.