Correlation Between Moelis and Helix Acquisition

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

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

Diversification Opportunities for Moelis and Helix Acquisition

-0.18

Correlation Coefficient

Moelis  Helix Acquisition

Good diversification

The 3 months correlation between Moelis and Helix is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Moelis Co and Helix Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helix Acquisition Corp and Moelis 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 Moelis Co are associated (or correlated) with Helix Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helix Acquisition Corp has no effect on the direction of Moelis i.e., Moelis and Helix Acquisition go up and down completely randomly.

Pair Corralation between Moelis and Helix Acquisition

Allowing for the 90-day total investment horizon Moelis Co is expected to under-perform the Helix Acquisition. In addition to that, Moelis is 1.67 times more volatile than Helix Acquisition Corp. It trades about -0.13 of its total potential returns per unit of risk. Helix Acquisition Corp is currently generating about 0.01 per unit of volatility. If you would invest  1,072  in Helix Acquisition Corp on December 27, 2024 and sell it today you would earn a total of  3.00  from holding Helix Acquisition Corp or generate 0.28% return on investment over 90 days.

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

Moelis Co  vs.  Helix Acquisition Corp

Moelis

Risk-Adjusted Performance

Very Weak

Over the last 90 days Moelis 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 fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Helix Acquisition Corp

Risk-Adjusted Performance

Insignificant

Over the last 90 days Helix Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Helix Acquisition is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Moelis and Helix Acquisition

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

The idea behind Moelis Co and Helix Acquisition Corp 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 Commodity Directory module to find actively traded commodities issued by global exchanges.