Correlation Between Sable Offshore and Helmerich

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

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

Diversification Opportunities for Sable Offshore and Helmerich

-0.23

Correlation Coefficient

Sable Offshore  Helmerich

Very good diversification

The 3 months correlation between Sable and Helmerich is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sable Offshore Corp and Helmerich and Payne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helmerich and Payne and Sable Offshore 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 Sable Offshore Corp are associated (or correlated) with Helmerich. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helmerich and Payne has no effect on the direction of Sable Offshore i.e., Sable Offshore and Helmerich go up and down completely randomly.

Pair Corralation between Sable Offshore and Helmerich

Considering the 90-day investment horizon Sable Offshore Corp is expected to generate 1.61 times more return on investment than Helmerich. However, Sable Offshore is 1.61 times more volatile than Helmerich and Payne. It trades about 0.05 of its potential returns per unit of risk. Helmerich and Payne is currently generating about -0.08 per unit of risk. If you would invest  2,380  in Sable Offshore Corp on December 28, 2024 and sell it today you would earn a total of  233.00  from holding Sable Offshore Corp or generate 9.79% return on investment over 90 days.

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

Sable Offshore Corp  vs.  Helmerich and Payne

Sable Offshore Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sable Offshore Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Sable Offshore exhibited solid returns over the last few months and may actually be approaching a breakup point.

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 unsteady 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.

Pair Trading with Sable Offshore and Helmerich

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

The idea behind Sable Offshore Corp and Helmerich and Payne 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.