Correlation Between CIFI Holdings and HF SINCLAIR
Can any of the company-specific risk be diversified away by investing in both CIFI Holdings 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 CIFI Holdings and HF SINCLAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIFI Holdings Co and HF SINCLAIR P, you can compare the effects of market volatilities on CIFI Holdings 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 CIFI Holdings with a short position of HF SINCLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIFI Holdings and HF SINCLAIR.
Diversification Opportunities for CIFI Holdings and HF SINCLAIR
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between CIFI and HL80 is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding CIFI Holdings Co 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 CIFI Holdings 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 CIFI Holdings Co 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 CIFI Holdings i.e., CIFI Holdings and HF SINCLAIR go up and down completely randomly.
Pair Corralation between CIFI Holdings and HF SINCLAIR
Assuming the 90 days horizon CIFI Holdings Co is expected to generate 6.04 times more return on investment than HF SINCLAIR. However, CIFI Holdings is 6.04 times more volatile than HF SINCLAIR P. It trades about 0.1 of its potential returns per unit of risk. HF SINCLAIR P is currently generating about -0.06 per unit of risk. If you would invest 2.15 in CIFI Holdings Co on September 3, 2024 and sell it today you would earn a total of 1.00 from holding CIFI Holdings Co or generate 46.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIFI Holdings Co vs. HF SINCLAIR P
Performance |
| Timeline |
| CIFI Holdings |
| HF SINCLAIR P |
CIFI Holdings and HF SINCLAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIFI Holdings and HF SINCLAIR
The main advantage of trading using opposite CIFI Holdings and HF SINCLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIFI Holdings 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.| CIFI Holdings vs. HF SINCLAIR P | CIFI Holdings vs. Japan Post Insurance | CIFI Holdings vs. Wizz Air Holdings | CIFI Holdings vs. Norwegian Air Shuttle |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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