Correlation Between Asure Software and HF Sinclair

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

By analyzing existing cross correlation between Asure Software and HF Sinclair Corp, you can compare the effects of market volatilities on Asure Software and HF Sinclair 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 Asure Software with a short position of HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asure Software and HF Sinclair.

Diversification Opportunities for Asure Software and HF Sinclair

-0.15

Correlation Coefficient

Asure Software  HF Sinclair

Good diversification

The 3 months correlation between Asure and DINO is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Asure Software and HF Sinclair Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF Sinclair Corp and Asure Software 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 Asure Software are associated (or correlated) with HF Sinclair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF Sinclair Corp has no effect on the direction of Asure Software i.e., Asure Software and HF Sinclair go up and down completely randomly.

Pair Corralation between Asure Software and HF Sinclair

Given the investment horizon of 90 days Asure Software is expected to under-perform the HF Sinclair. But the stock apears to be less risky and, when comparing its historical volatility, Asure Software is 1.4 times less risky than HF Sinclair. The stock trades about -0.26 of its potential returns per unit of risk. The HF Sinclair Corp is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  3,608  in HF Sinclair Corp on December 2, 2024 and sell it today you would lose (81.00) from holding HF Sinclair Corp or give up 2.25% of portfolio value over 90 days.

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

Asure Software  vs.  HF Sinclair Corp

Asure Software

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Asure Software are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Asure Software may actually be approaching a critical reversion point that can send shares even higher in April 2025.

HF Sinclair Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days HF Sinclair Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Asure Software and HF Sinclair

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

The idea behind Asure Software and HF Sinclair Corp 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.