Correlation Between HF Sinclair and 75513ECP4

Can any of the company-specific risk be diversified away by investing in both HF Sinclair and 75513ECP4 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 75513ECP4 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 RTX 303 15 MAR 52, you can compare the effects of market volatilities on HF Sinclair and 75513ECP4 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 75513ECP4. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and 75513ECP4.

Diversification Opportunities for HF Sinclair and 75513ECP4

0.71

Correlation Coefficient

HF Sinclair  75513ECP4

Poor diversification

The 3 months correlation between DINO and 75513ECP4 is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and RTX 303 15 MAR 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTX 303 15 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 75513ECP4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RTX 303 15 has no effect on the direction of HF Sinclair i.e., HF Sinclair and 75513ECP4 go up and down completely randomly.

Pair Corralation between HF Sinclair and 75513ECP4

Given the investment horizon of 90 days HF Sinclair Corp is expected to under-perform the 75513ECP4. In addition to that, HF Sinclair is 1.62 times more volatile than RTX 303 15 MAR 52. It trades about -0.02 of its total potential returns per unit of risk. RTX 303 15 MAR 52 is currently generating about -0.01 per unit of volatility. If you would invest  7,486  in RTX 303 15 MAR 52 on October 23, 2024 and sell it today you would lose (530.00) from holding RTX 303 15 MAR 52 or give up 7.08% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	94.33%
Values	Daily Returns

HF Sinclair Corp  vs.  RTX 303 15 MAR 52

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.

RTX 303 15

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in RTX 303 15 MAR 52 are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 75513ECP4 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 75513ECP4

The main advantage of trading using opposite HF Sinclair and 75513ECP4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, 75513ECP4 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 75513ECP4 will offset losses from the drop in 75513ECP4's long position.

The idea behind HF Sinclair Corp and RTX 303 15 MAR 52 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.