Correlation Between Helmerich and Argo Group

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

By analyzing existing cross correlation between Helmerich and Payne and Argo Group 65, you can compare the effects of market volatilities on Helmerich and Argo Group 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 with a short position of Argo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helmerich and Argo Group.

Diversification Opportunities for Helmerich and Argo Group

-0.31

Correlation Coefficient

Helmerich  Argo Group

Very good diversification

The 3 months correlation between Helmerich and Argo is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Helmerich and Payne and Argo Group 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Group 65 and Helmerich 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 and Payne are associated (or correlated) with Argo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Group 65 has no effect on the direction of Helmerich i.e., Helmerich and Argo Group go up and down completely randomly.

Pair Corralation between Helmerich and Argo Group

Allowing for the 90-day total investment horizon Helmerich and Payne is expected to under-perform the Argo Group. In addition to that, Helmerich is 7.19 times more volatile than Argo Group 65. It trades about -0.03 of its total potential returns per unit of risk. Argo Group 65 is currently generating about 0.31 per unit of volatility. If you would invest  1,969  in Argo Group 65 on May 11, 2025 and sell it today you would earn a total of  187.00  from holding Argo Group 65 or generate 9.5% return on investment over 90 days.

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

Helmerich and Payne  vs.  Argo Group 65

Helmerich and Payne

Risk-Adjusted Performance

Weakest

Over the last 90 days Helmerich and Payne has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Helmerich is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Argo Group 65

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Argo Group 65 are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting technical and fundamental indicators, Argo Group may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Helmerich and Argo Group

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

The idea behind Helmerich and Payne and Argo Group 65 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.