Correlation Between ASSOC BR and HF SINCLAIR
Can any of the company-specific risk be diversified away by investing in both ASSOC BR 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 ASSOC BR and HF SINCLAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASSOC BR FOODS and HF SINCLAIR P, you can compare the effects of market volatilities on ASSOC BR 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 ASSOC BR with a short position of HF SINCLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASSOC BR and HF SINCLAIR.
Diversification Opportunities for ASSOC BR and HF SINCLAIR
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between ASSOC and HL80 is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding ASSOC BR FOODS 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 ASSOC BR 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 ASSOC BR FOODS 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 ASSOC BR i.e., ASSOC BR and HF SINCLAIR go up and down completely randomly.
Pair Corralation between ASSOC BR and HF SINCLAIR
Assuming the 90 days trading horizon ASSOC BR FOODS is expected to generate 0.72 times more return on investment than HF SINCLAIR. However, ASSOC BR FOODS is 1.39 times less risky than HF SINCLAIR. It trades about 0.01 of its potential returns per unit of risk. HF SINCLAIR P is currently generating about -0.04 per unit of risk. If you would invest 2,583 in ASSOC BR FOODS on September 14, 2024 and sell it today you would earn a total of 77.00 from holding ASSOC BR FOODS or generate 2.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASSOC BR FOODS vs. HF SINCLAIR P
Performance |
| Timeline |
| ASSOC BR FOODS |
| HF SINCLAIR P |
ASSOC BR and HF SINCLAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASSOC BR and HF SINCLAIR
The main advantage of trading using opposite ASSOC BR and HF SINCLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASSOC BR 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.| ASSOC BR vs. Hormel Foods | ASSOC BR vs. Superior Plus Corp | ASSOC BR vs. SIVERS SEMICONDUCTORS AB | ASSOC BR vs. NorAm Drilling AS |
| HF SINCLAIR vs. INDOFOOD AGRI RES | HF SINCLAIR vs. Gamma Communications plc | HF SINCLAIR vs. SENECA FOODS A | HF SINCLAIR vs. ASSOC BR FOODS |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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