Correlation Between HF Sinclair and PTL

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

Diversification Opportunities for HF Sinclair and PTL

-0.68

Correlation Coefficient

HF Sinclair  PTL

Excellent diversification

The 3 months correlation between DINO and PTL is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and PTL LTD Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTL LTD Ordinary 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 PTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTL LTD Ordinary has no effect on the direction of HF Sinclair i.e., HF Sinclair and PTL go up and down completely randomly.

Pair Corralation between HF Sinclair and PTL

Given the investment horizon of 90 days HF Sinclair Corp is expected to generate 0.06 times more return on investment than PTL. However, HF Sinclair Corp is 16.19 times less risky than PTL. It trades about 0.14 of its potential returns per unit of risk. PTL LTD Ordinary is currently generating about -0.06 per unit of risk. If you would invest  3,413  in HF Sinclair Corp on October 24, 2024 and sell it today you would earn a total of  131.00  from holding HF Sinclair Corp or generate 3.84% return on investment over 90 days.

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

HF Sinclair Corp  vs.  PTL LTD Ordinary

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.

PTL LTD Ordinary

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in PTL LTD Ordinary are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting essential indicators, PTL exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HF Sinclair and PTL

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

The idea behind HF Sinclair Corp and PTL LTD Ordinary 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.