How risky is Helmerich And Payne after the recent volatility roll up?

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HP Stock  USD 36.74  1.42  4.02%   
Ellen Johnson
By Ellen Johnson
Macroaxis Story
It appears that Helmerich may not recover as fast as we have hopped for as its price went down 1.26% today. The company current daily volatility is 3.15 percent, with a beta of 1.4 and an alpha of 0.03 over Dow Jones Industrial. As many insiders getting excited about recent market fluctuations it is important to recap Helmerich based on its critical indicators. We will evaluate if Helmerich shares are reasonably priced going into March.
Published over a month ago
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Reviewed by Gabriel Shpitalnik

Helmerich And Payne reports roughly 232.13 M in cash with 233.91 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.32.
Our trade recommendations tool can be used to complement Helmerich And Payne advice provided by experts. It analyzes the entity's potential to grow against your specific risk preferences and investment horizon.
Investing in Helmerich, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Helmerich along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Helmerich's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Helmerich in the context of predictive analytics.
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Please note, it is not enough to conduct a financial or market analysis of a single entity such as Helmerich. Your research has to be compared to or analyzed against Helmerich's peers to derive any actionable benefits. When done correctly, Helmerich's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Helmerich And Payne.

How important is Helmerich's Liquidity

Helmerich financial leverage refers to using borrowed capital as a funding source to finance Helmerich And Payne ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Helmerich financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Helmerich's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Helmerich, but it might be worth checking our own buy vs. sell analysis

Helmerich Correlation with Peers

Investors in Helmerich can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Helmerich And Payne. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Helmerich and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Helmerich is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Helmerich for more details

Going after Helmerich Financials

We consider Helmerich very steady. Helmerich And Payne holds Efficiency (Sharpe) Ratio of 0.0216, which attests that the entity had 0.0216% of return per unit of risk over the last 3 months. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Helmerich And Payne, which you can use to evaluate the future volatility of the firm. Please check out Helmerich Downside Deviation of 3.17, risk adjusted performance of 0.0687, and Market Risk Adjusted Performance of 0.1402 to validate if the risk estimate we provide is consistent with the expected return of 0.068%.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Is Helmerich showing symptom of lower volatility?

Recent standard deviation is at 3.34. Helmerich And Payne shows above-average downside volatility for the selected time horizon. We advise investors to inspect Helmerich And Payne further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Helmerich future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Helmerich's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Helmerich's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

The Bottom Line

Although some other firms within the oil & gas drilling industry are still a little expensive, even after the recent corrections, Helmerich may offer a potential longer-term growth to insiders. To conclude, as of the 30th of January 2023, our overall 90 days buy-sell recommendation on the firm is Sell. We believe Helmerich is currently overvalued with low probability of financial unrest for the next two years.

Editorial Staff

Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Helmerich And Payne. Please refer to our Terms of Use for any information regarding our disclosure principles.

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