Correlation Between HF Sinclair and Artisan Partners

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

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

Diversification Opportunities for HF Sinclair and Artisan Partners

-0.43

Correlation Coefficient

HF Sinclair  Artisan Partners

Very good diversification

The 3 months correlation between DINO and Artisan is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Artisan Partners Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Partners Asset and HF Sinclair 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 HF Sinclair Corp are associated (or correlated) with Artisan Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Partners Asset has no effect on the direction of HF Sinclair i.e., HF Sinclair and Artisan Partners go up and down completely randomly.

Pair Corralation between HF Sinclair and Artisan Partners

Given the investment horizon of 90 days HF Sinclair Corp is expected to under-perform the Artisan Partners. In addition to that, HF Sinclair is 1.09 times more volatile than Artisan Partners Asset. It trades about -0.16 of its total potential returns per unit of risk. Artisan Partners Asset is currently generating about 0.05 per unit of volatility. If you would invest  3,990  in Artisan Partners Asset on September 22, 2024 and sell it today you would earn a total of  384.00  from holding Artisan Partners Asset or generate 9.62% return on investment over 90 days.

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

HF Sinclair Corp  vs.  Artisan Partners Asset

HF Sinclair Corp

Risk-Adjusted Performance

0 of 100

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 January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Artisan Partners Asset

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Artisan Partners Asset are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Artisan Partners is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with HF Sinclair and Artisan Partners

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

The idea behind HF Sinclair Corp and Artisan Partners Asset 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.