Correlation Between HF SINCLAIR and Calibre Mining

Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR and Calibre Mining 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 Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between HF SINCLAIR P and Calibre Mining Corp, you can compare the effects of market volatilities on HF SINCLAIR and Calibre Mining 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 Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and Calibre Mining.

Diversification Opportunities for HF SINCLAIR and Calibre Mining

0.43

Correlation Coefficient

HF SINCLAIR  Calibre Mining

Very weak diversification

The 3 months correlation between HL80 and Calibre is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P and Calibre Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calibre Mining 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 P are associated (or correlated) with Calibre Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calibre Mining Corp has no effect on the direction of HF SINCLAIR i.e., HF SINCLAIR and Calibre Mining go up and down completely randomly.

Pair Corralation between HF SINCLAIR and Calibre Mining

Assuming the 90 days trading horizon HF SINCLAIR P is expected to under-perform the Calibre Mining. But the stock apears to be less risky and, when comparing its historical volatility, HF SINCLAIR P is 1.23 times less risky than Calibre Mining. The stock trades about -0.06 of its potential returns per unit of risk. The Calibre Mining Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  165.00  in Calibre Mining Corp on September 13, 2024 and sell it today you would earn a total of  5.00  from holding Calibre Mining Corp or generate 3.03% return on investment over 90 days.

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

HF SINCLAIR P  vs.  Calibre Mining Corp

HF SINCLAIR P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HF SINCLAIR P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Calibre Mining Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Calibre Mining Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Calibre Mining is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with HF SINCLAIR and Calibre Mining

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

The idea behind HF SINCLAIR P and Calibre Mining 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.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.