Correlation Between MOVIE GAMES and HF SINCLAIR
Can any of the company-specific risk be diversified away by investing in both MOVIE GAMES 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 MOVIE GAMES and HF SINCLAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOVIE GAMES SA and HF SINCLAIR P, you can compare the effects of market volatilities on MOVIE GAMES 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 MOVIE GAMES with a short position of HF SINCLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and HF SINCLAIR.
Diversification Opportunities for MOVIE GAMES and HF SINCLAIR
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MOVIE and HL80 is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA and HF SINCLAIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF SINCLAIR P and MOVIE GAMES 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 MOVIE GAMES SA 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 P has no effect on the direction of MOVIE GAMES i.e., MOVIE GAMES and HF SINCLAIR go up and down completely randomly.
Pair Corralation between MOVIE GAMES and HF SINCLAIR
Assuming the 90 days horizon MOVIE GAMES SA is expected to generate 1.86 times more return on investment than HF SINCLAIR. However, MOVIE GAMES is 1.86 times more volatile than HF SINCLAIR P. It trades about 0.0 of its potential returns per unit of risk. HF SINCLAIR P is currently generating about 0.0 per unit of risk. If you would invest 470.00 in MOVIE GAMES SA on September 4, 2024 and sell it today you would lose (113.00) from holding MOVIE GAMES SA or give up 24.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOVIE GAMES SA vs. HF SINCLAIR P
Performance |
| Timeline |
| MOVIE GAMES SA |
| HF SINCLAIR P |
MOVIE GAMES and HF SINCLAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOVIE GAMES and HF SINCLAIR
The main advantage of trading using opposite MOVIE GAMES and HF SINCLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOVIE GAMES 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.| MOVIE GAMES vs. Apple Inc | MOVIE GAMES vs. Apple Inc | MOVIE GAMES vs. Apple Inc | MOVIE GAMES vs. Apple Inc |
| HF SINCLAIR vs. MCEWEN MINING INC | HF SINCLAIR vs. Wayside Technology Group | HF SINCLAIR vs. GALENA MINING LTD | HF SINCLAIR vs. Vishay Intertechnology |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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