Correlation Between HF Sinclair and Telia Company

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

Diversification Opportunities for HF Sinclair and Telia Company

0.0

Correlation Coefficient

HF Sinclair  Telia Company

Pay attention - limited upside

The 3 months correlation between DINO and Telia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Telia Company AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telia Company 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 Telia Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telia Company has no effect on the direction of HF Sinclair i.e., HF Sinclair and Telia Company go up and down completely randomly.

Pair Corralation between HF Sinclair and Telia Company

If you would invest  3,322  in HF Sinclair Corp on December 20, 2024 and sell it today you would earn a total of  71.00  from holding HF Sinclair Corp or generate 2.14% 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.  Telia Company AB

HF Sinclair Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in HF Sinclair Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

Telia Company

Risk-Adjusted Performance

Very Weak

Over the last 90 days Telia Company AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Telia Company is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with HF Sinclair and Telia Company

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

The idea behind HF Sinclair Corp and Telia Company AB 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.