Correlation Between Helios Fairfax and PHX Energy

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

By analyzing existing cross correlation between Helios Fairfax Partners and PHX Energy Services, you can compare the effects of market volatilities on Helios Fairfax and PHX Energy 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 Helios Fairfax with a short position of PHX Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helios Fairfax and PHX Energy.

Diversification Opportunities for Helios Fairfax and PHX Energy

-0.08

Correlation Coefficient

Helios Fairfax  PHX Energy

Good diversification

The 3 months correlation between Helios and PHX is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Helios Fairfax Partners and PHX Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHX Energy Services and Helios Fairfax 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 Helios Fairfax Partners are associated (or correlated) with PHX Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHX Energy Services has no effect on the direction of Helios Fairfax i.e., Helios Fairfax and PHX Energy go up and down completely randomly.

Pair Corralation between Helios Fairfax and PHX Energy

Assuming the 90 days trading horizon Helios Fairfax Partners is expected to under-perform the PHX Energy. In addition to that, Helios Fairfax is 1.52 times more volatile than PHX Energy Services. It trades about -0.17 of its total potential returns per unit of risk. PHX Energy Services is currently generating about -0.04 per unit of volatility. If you would invest  794.00  in PHX Energy Services on May 19, 2025 and sell it today you would lose (35.00) from holding PHX Energy Services or give up 4.41% of portfolio value over 90 days.

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

Helios Fairfax Partners  vs.  PHX Energy Services

Helios Fairfax Partners

Risk-Adjusted Performance

Weakest

Over the last 90 days Helios Fairfax Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

PHX Energy Services

Risk-Adjusted Performance

Weakest

Over the last 90 days PHX Energy Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, PHX Energy is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Helios Fairfax and PHX Energy

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

The idea behind Helios Fairfax Partners and PHX Energy Services 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.