Correlation Between HF Sinclair and 21036PBN7

Can any of the company-specific risk be diversified away by investing in both HF Sinclair and 21036PBN7 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 21036PBN7 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 STZ 5 02 FEB 26, you can compare the effects of market volatilities on HF Sinclair and 21036PBN7 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 21036PBN7. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and 21036PBN7.

Diversification Opportunities for HF Sinclair and 21036PBN7

0.3

Correlation Coefficient

HF Sinclair  21036PBN7

Weak diversification

The 3 months correlation between DINO and 21036PBN7 is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and STZ 5 02 FEB 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21036PBN7 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 21036PBN7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21036PBN7 has no effect on the direction of HF Sinclair i.e., HF Sinclair and 21036PBN7 go up and down completely randomly.

Pair Corralation between HF Sinclair and 21036PBN7

Given the investment horizon of 90 days HF Sinclair Corp is expected to under-perform the 21036PBN7. In addition to that, HF Sinclair is 12.85 times more volatile than STZ 5 02 FEB 26. It trades about -0.33 of its total potential returns per unit of risk. STZ 5 02 FEB 26 is currently generating about 0.03 per unit of volatility. If you would invest  9,993  in STZ 5 02 FEB 26 on October 5, 2024 and sell it today you would earn a total of  7.00  from holding STZ 5 02 FEB 26 or generate 0.07% return on investment over 90 days.

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

HF Sinclair Corp  vs.  STZ 5 02 FEB 26

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.

21036PBN7

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in STZ 5 02 FEB 26 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 21036PBN7 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with HF Sinclair and 21036PBN7

The main advantage of trading using opposite HF Sinclair and 21036PBN7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, 21036PBN7 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 21036PBN7 will offset losses from the drop in 21036PBN7's long position.

The idea behind HF Sinclair Corp and STZ 5 02 FEB 26 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.