Correlation Between Helmerich and American Healthcare

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

By analyzing existing cross correlation between Helmerich and Payne and American Healthcare REIT,, you can compare the effects of market volatilities on Helmerich and American Healthcare 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 with a short position of American Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helmerich and American Healthcare.

Diversification Opportunities for Helmerich and American Healthcare

-0.45

Correlation Coefficient

Helmerich  American Healthcare

Very good diversification

The 3 months correlation between Helmerich and American is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Helmerich and Payne and American Healthcare REIT, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Healthcare REIT, and Helmerich 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 and Payne are associated (or correlated) with American Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Healthcare REIT, has no effect on the direction of Helmerich i.e., Helmerich and American Healthcare go up and down completely randomly.

Pair Corralation between Helmerich and American Healthcare

Allowing for the 90-day total investment horizon Helmerich and Payne is expected to under-perform the American Healthcare. In addition to that, Helmerich is 1.61 times more volatile than American Healthcare REIT,. It trades about -0.09 of its total potential returns per unit of risk. American Healthcare REIT, is currently generating about 0.08 per unit of volatility. If you would invest  2,808  in American Healthcare REIT, on December 29, 2024 and sell it today you would earn a total of  235.00  from holding American Healthcare REIT, or generate 8.37% return on investment over 90 days.

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

Helmerich and Payne  vs.  American Healthcare REIT,

Helmerich and Payne

Risk-Adjusted Performance

Very Weak

Over the last 90 days Helmerich and Payne has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

American Healthcare REIT,

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in American Healthcare REIT, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile technical indicators, American Healthcare may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Helmerich and American Healthcare

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

The idea behind Helmerich and Payne and American Healthcare REIT, 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.