Correlation Between HF Sinclair and Corpay

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

Diversification Opportunities for HF Sinclair and Corpay

-0.09

Correlation Coefficient

HF Sinclair  Corpay

Good diversification

The 3 months correlation between DINO and Corpay is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Corpay Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corpay Inc 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 Corpay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corpay Inc has no effect on the direction of HF Sinclair i.e., HF Sinclair and Corpay go up and down completely randomly.

Pair Corralation between HF Sinclair and Corpay

Given the investment horizon of 90 days HF Sinclair Corp is expected to under-perform the Corpay. In addition to that, HF Sinclair is 1.45 times more volatile than Corpay Inc. It trades about -0.39 of its total potential returns per unit of risk. Corpay Inc is currently generating about -0.39 per unit of volatility. If you would invest  37,458  in Corpay Inc on October 4, 2024 and sell it today you would lose (3,616) from holding Corpay Inc or give up 9.65% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

HF Sinclair Corp  vs.  Corpay Inc

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

Corpay Inc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Corpay Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Corpay is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with HF Sinclair and Corpay

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

The idea behind HF Sinclair Corp and Corpay Inc 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.