Correlation Between Helmerich and Oceaneering International

Can any of the company-specific risk be diversified away by investing in both Helmerich and Oceaneering International 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 Oceaneering International 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 Oceaneering International, you can compare the effects of market volatilities on Helmerich and Oceaneering International 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 Oceaneering International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helmerich and Oceaneering International.

Diversification Opportunities for Helmerich and Oceaneering International

-0.18

Correlation Coefficient

Helmerich  Oceaneering International

Good diversification

The 3 months correlation between Helmerich and Oceaneering is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Helmerich and Payne and Oceaneering International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oceaneering International 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 Oceaneering International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oceaneering International has no effect on the direction of Helmerich i.e., Helmerich and Oceaneering International go up and down completely randomly.

Pair Corralation between Helmerich and Oceaneering International

Allowing for the 90-day total investment horizon Helmerich and Payne is expected to under-perform the Oceaneering International. In addition to that, Helmerich is 1.46 times more volatile than Oceaneering International. It trades about -0.08 of its total potential returns per unit of risk. Oceaneering International is currently generating about 0.11 per unit of volatility. If you would invest  1,835  in Oceaneering International on May 4, 2025 and sell it today you would earn a total of  282.00  from holding Oceaneering International or generate 15.37% 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.  Oceaneering International

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 unfluctuating performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Oceaneering International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Oceaneering International are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Oceaneering International demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Helmerich and Oceaneering International

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

The idea behind Helmerich and Payne and Oceaneering International 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.

Check out your portfolio center.

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.