Correlation Between HF Sinclair and B Riley

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

Diversification Opportunities for HF Sinclair and B Riley

-0.4

Correlation Coefficient

HF Sinclair  B Riley

Very good diversification

The 3 months correlation between DINO and RILYM is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and B Riley Financial, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Riley Financial, 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 B Riley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Riley Financial, has no effect on the direction of HF Sinclair i.e., HF Sinclair and B Riley go up and down completely randomly.

Pair Corralation between HF Sinclair and B Riley

Given the investment horizon of 90 days HF Sinclair is expected to generate 12.04 times less return on investment than B Riley. In addition to that, HF Sinclair is 2.53 times more volatile than B Riley Financial,. It trades about 0.01 of its total potential returns per unit of risk. B Riley Financial, is currently generating about 0.3 per unit of volatility. If you would invest  2,236  in B Riley Financial, on December 28, 2024 and sell it today you would earn a total of  275.00  from holding B Riley Financial, or generate 12.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	68.33%
Values	Daily Returns

HF Sinclair Corp  vs.  B Riley Financial,

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 very healthy basic indicators, HF Sinclair is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

B Riley Financial,

Risk-Adjusted Performance

Solid

Over the last 90 days B Riley Financial, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very unfluctuating basic indicators, B Riley displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HF Sinclair and B Riley

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

The idea behind HF Sinclair Corp and B Riley Financial, 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.