Correlation Between HF Sinclair and 713448FG8

Can any of the company-specific risk be diversified away by investing in both HF Sinclair and 713448FG8 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 713448FG8 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 PEP 275 21 OCT 51, you can compare the effects of market volatilities on HF Sinclair and 713448FG8 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 713448FG8. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and 713448FG8.

Diversification Opportunities for HF Sinclair and 713448FG8

-0.02

Correlation Coefficient

HF Sinclair  713448FG8

Good diversification

The 3 months correlation between DINO and 713448FG8 is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and PEP 275 21 OCT 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEP 275 21 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 713448FG8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEP 275 21 has no effect on the direction of HF Sinclair i.e., HF Sinclair and 713448FG8 go up and down completely randomly.

Pair Corralation between HF Sinclair and 713448FG8

Given the investment horizon of 90 days HF Sinclair Corp is expected to under-perform the 713448FG8. But the stock apears to be less risky and, when comparing its historical volatility, HF Sinclair Corp is 1.43 times less risky than 713448FG8. The stock trades about -0.14 of its potential returns per unit of risk. The PEP 275 21 OCT 51 is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  6,745  in PEP 275 21 OCT 51 on October 15, 2024 and sell it today you would earn a total of  116.00  from holding PEP 275 21 OCT 51 or generate 1.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	83.87%
Values	Daily Returns

HF Sinclair Corp  vs.  PEP 275 21 OCT 51

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.

PEP 275 21

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PEP 275 21 OCT 51 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 713448FG8 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with HF Sinclair and 713448FG8

The main advantage of trading using opposite HF Sinclair and 713448FG8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, 713448FG8 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 713448FG8 will offset losses from the drop in 713448FG8's long position.

The idea behind HF Sinclair Corp and PEP 275 21 OCT 51 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.

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 Equity Valuation module to check real value of public entities based on technical and fundamental data.