Correlation Between HF Sinclair and NTRCN

Can any of the company-specific risk be diversified away by investing in both HF Sinclair and NTRCN 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 NTRCN 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 NTRCN 595 07 NOV 25, you can compare the effects of market volatilities on HF Sinclair and NTRCN 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 NTRCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and NTRCN.

Diversification Opportunities for HF Sinclair and NTRCN

0.33

Correlation Coefficient

HF Sinclair  NTRCN

Weak diversification

The 3 months correlation between DINO and NTRCN is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and NTRCN 595 07 NOV 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTRCN 595 07 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 NTRCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTRCN 595 07 has no effect on the direction of HF Sinclair i.e., HF Sinclair and NTRCN go up and down completely randomly.

Pair Corralation between HF Sinclair and NTRCN

Given the investment horizon of 90 days HF Sinclair Corp is expected to generate 25.5 times more return on investment than NTRCN. However, HF Sinclair is 25.5 times more volatile than NTRCN 595 07 NOV 25. It trades about 0.0 of its potential returns per unit of risk. NTRCN 595 07 NOV 25 is currently generating about -0.06 per unit of risk. If you would invest  3,367  in HF Sinclair Corp on December 30, 2024 and sell it today you would lose (61.00) from holding HF Sinclair Corp or give up 1.81% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

HF Sinclair Corp  vs.  NTRCN 595 07 NOV 25

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.

NTRCN 595 07

Risk-Adjusted Performance

Very Weak

Over the last 90 days NTRCN 595 07 NOV 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, NTRCN is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with HF Sinclair and NTRCN

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

The idea behind HF Sinclair Corp and NTRCN 595 07 NOV 25 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.