Correlation Between HF Sinclair and TradeUP Acquisition

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

Diversification Opportunities for HF Sinclair and TradeUP Acquisition

0.0

Correlation Coefficient

HF Sinclair  TradeUP Acquisition

Pay attention - limited upside

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

Pair Corralation between HF Sinclair and TradeUP Acquisition

If you would invest  3,368  in HF Sinclair Corp on December 27, 2024 and sell it today you would lose (41.00) from holding HF Sinclair Corp or give up 1.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

HF Sinclair Corp  vs.  TradeUP Acquisition Corp

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.

TradeUP Acquisition Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days TradeUP Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, TradeUP Acquisition is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with HF Sinclair and TradeUP Acquisition

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

The idea behind HF Sinclair Corp and TradeUP Acquisition Corp 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.