Correlation Between HF Sinclair and Terra Firma
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Terra Firma 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 Terra Firma 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 Terra Firma Capital, you can compare the effects of market volatilities on HF Sinclair and Terra Firma 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 Terra Firma. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Terra Firma.
Diversification Opportunities for HF Sinclair and Terra Firma
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DINO and Terra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Terra Firma Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terra Firma Capital 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 Terra Firma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terra Firma Capital has no effect on the direction of HF Sinclair i.e., HF Sinclair and Terra Firma go up and down completely randomly.
Pair Corralation between HF Sinclair and Terra Firma
If you would invest (100.00) in Terra Firma Capital on December 18, 2024 and sell it today you would earn a total of 100.00 from holding Terra Firma Capital or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
HF Sinclair Corp vs. Terra Firma Capital
Performance |
Timeline |
HF Sinclair Corp |
Terra Firma Capital |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
HF Sinclair and Terra Firma Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HF Sinclair and Terra Firma
The main advantage of trading using opposite HF Sinclair and Terra Firma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Terra Firma 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 Terra Firma will offset losses from the drop in Terra Firma's long position.HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
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Check out your portfolio center.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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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