Correlation Between Helmerich Payne and Afentra PLC

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

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

Diversification Opportunities for Helmerich Payne and Afentra PLC

-0.66

Correlation Coefficient

Helmerich Payne  Afentra PLC

Excellent diversification

The 3 months correlation between Helmerich and Afentra is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Helmerich Payne and Afentra PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afentra PLC 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 Afentra PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afentra PLC has no effect on the direction of Helmerich Payne i.e., Helmerich Payne and Afentra PLC go up and down completely randomly.

Pair Corralation between Helmerich Payne and Afentra PLC

Assuming the 90 days horizon Helmerich Payne is expected to under-perform the Afentra PLC. In addition to that, Helmerich Payne is 1.08 times more volatile than Afentra PLC. It trades about -0.17 of its total potential returns per unit of risk. Afentra PLC is currently generating about 0.07 per unit of volatility. If you would invest  48.00  in Afentra PLC on April 1, 2025 and sell it today you would earn a total of  7.00  from holding Afentra PLC or generate 14.58% return on investment over 90 days.

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

Helmerich Payne  vs.  Afentra PLC

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 fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in July 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Afentra PLC

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Afentra PLC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Afentra PLC reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Helmerich Payne and Afentra PLC

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

The idea behind Helmerich Payne and Afentra PLC 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.