Correlation Between Helmerich Payne and Nabors Industries

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

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

Diversification Opportunities for Helmerich Payne and Nabors Industries

-0.12

Correlation Coefficient

Helmerich Payne  Nabors Industries

Good diversification

The 3 months correlation between Helmerich and Nabors is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Helmerich Payne and Nabors Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nabors Industries and Helmerich Payne 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 Payne are associated (or correlated) with Nabors Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nabors Industries has no effect on the direction of Helmerich Payne i.e., Helmerich Payne and Nabors Industries go up and down completely randomly.

Pair Corralation between Helmerich Payne and Nabors Industries

Assuming the 90 days horizon Helmerich Payne is expected to under-perform the Nabors Industries. But the stock apears to be less risky and, when comparing its historical volatility, Helmerich Payne is 1.05 times less risky than Nabors Industries. The stock trades about -0.12 of its potential returns per unit of risk. The Nabors Industries is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2,480  in Nabors Industries on April 16, 2025 and sell it today you would earn a total of  280.00  from holding Nabors Industries or generate 11.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Helmerich Payne  vs.  Nabors Industries

Helmerich Payne

Risk-Adjusted Performance

Very Weak

Over the last 90 days Helmerich Payne has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Nabors Industries

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Nabors Industries are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, Nabors Industries reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Helmerich Payne and Nabors Industries

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

The idea behind Helmerich Payne and Nabors Industries 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.