Correlation Between Thermon Group and Helios Technologies
Can any of the company-specific risk be diversified away by investing in both Thermon Group and Helios Technologies 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 Thermon Group and Helios Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thermon Group Holdings and Helios Technologies, you can compare the effects of market volatilities on Thermon Group and Helios Technologies 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 Thermon Group with a short position of Helios Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermon Group and Helios Technologies.
Diversification Opportunities for Thermon Group and Helios Technologies
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thermon and Helios is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Thermon Group Holdings and Helios Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helios Technologies and Thermon Group 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 Thermon Group Holdings are associated (or correlated) with Helios Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helios Technologies has no effect on the direction of Thermon Group i.e., Thermon Group and Helios Technologies go up and down completely randomly.
Pair Corralation between Thermon Group and Helios Technologies
Considering the 90-day investment horizon Thermon Group is expected to generate 2.96 times less return on investment than Helios Technologies. But when comparing it to its historical volatility, Thermon Group Holdings is 1.27 times less risky than Helios Technologies. It trades about 0.01 of its potential returns per unit of risk. Helios Technologies is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,508 in Helios Technologies on June 8, 2025 and sell it today you would lose (56.00) from holding Helios Technologies or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thermon Group Holdings vs. Helios Technologies
Performance |
| Timeline |
| Thermon Group Holdings |
| Helios Technologies |
Thermon Group and Helios Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermon Group and Helios Technologies
The main advantage of trading using opposite Thermon Group and Helios Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermon Group position performs unexpectedly, Helios Technologies 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 Helios Technologies will offset losses from the drop in Helios Technologies' long position.| Thermon Group vs. Luxfer Holdings PLC | Thermon Group vs. CSW Industrials, | Thermon Group vs. Watts Water Technologies | Thermon Group vs. Taylor Devices |
| Helios Technologies vs. Enerpac Tool Group | Helios Technologies vs. Omega Flex | Helios Technologies vs. Luxfer Holdings PLC | Helios Technologies vs. Gorman Rupp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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