Correlation Between 83051GAR9 and HF Sinclair

Can any of the company-specific risk be diversified away by investing in both 83051GAR9 and HF Sinclair 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 83051GAR9 and HF Sinclair into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SEB 85 02 SEP 25 and HF Sinclair Corp, you can compare the effects of market volatilities on 83051GAR9 and HF Sinclair 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 83051GAR9 with a short position of HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of 83051GAR9 and HF Sinclair.

Diversification Opportunities for 83051GAR9 and HF Sinclair

-0.53

Correlation Coefficient

83051GAR9  HF Sinclair

Excellent diversification

The 3 months correlation between 83051GAR9 and DINO is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding SEB 85 02 SEP 25 and HF Sinclair Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF Sinclair Corp and 83051GAR9 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 SEB 85 02 SEP 25 are associated (or correlated) with HF Sinclair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF Sinclair Corp has no effect on the direction of 83051GAR9 i.e., 83051GAR9 and HF Sinclair go up and down completely randomly.

Pair Corralation between 83051GAR9 and HF Sinclair

Assuming the 90 days trading horizon SEB 85 02 SEP 25 is expected to generate 0.04 times more return on investment than HF Sinclair. However, SEB 85 02 SEP 25 is 24.97 times less risky than HF Sinclair. It trades about 0.66 of its potential returns per unit of risk. HF Sinclair Corp is currently generating about -0.11 per unit of risk. If you would invest  9,719  in SEB 85 02 SEP 25 on December 2, 2024 and sell it today you would earn a total of  88.00  from holding SEB 85 02 SEP 25 or generate 0.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	24.59%
Values	Daily Returns

SEB 85 02 SEP 25  vs.  HF Sinclair Corp

SEB 85 02

Risk-Adjusted Performance

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in SEB 85 02 SEP 25 are ranked lower than 52 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 83051GAR9 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

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 conflicting performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with 83051GAR9 and HF Sinclair

The main advantage of trading using opposite 83051GAR9 and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 83051GAR9 position performs unexpectedly, HF Sinclair 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 HF Sinclair will offset losses from the drop in HF Sinclair's long position.

The idea behind SEB 85 02 SEP 25 and HF Sinclair 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.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.