Correlation Between HF Sinclair and Lever Global

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

Diversification Opportunities for HF Sinclair and Lever Global

-0.44

Correlation Coefficient

HF Sinclair  Lever Global

Very good diversification

The 3 months correlation between DINO and Lever is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Lever Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lever Global 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 Lever Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lever Global has no effect on the direction of HF Sinclair i.e., HF Sinclair and Lever Global go up and down completely randomly.

Pair Corralation between HF Sinclair and Lever Global

Given the investment horizon of 90 days HF Sinclair Corp is expected to under-perform the Lever Global. But the stock apears to be less risky and, when comparing its historical volatility, HF Sinclair Corp is 9.88 times less risky than Lever Global. The stock trades about -0.14 of its potential returns per unit of risk. The Lever Global is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  75.00  in Lever Global on October 22, 2024 and sell it today you would earn a total of  248.00  from holding Lever Global or generate 330.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	78.69%
Values	Daily Returns

HF Sinclair Corp  vs.  Lever Global

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.

Lever Global

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Lever Global are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical and fundamental indicators, Lever Global reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HF Sinclair and Lever Global

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

The idea behind HF Sinclair Corp and Lever Global 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.