Correlation Between Axalta Coating and HF Sinclair
Can any of the company-specific risk be diversified away by investing in both Axalta Coating 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 Axalta Coating and HF Sinclair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axalta Coating Systems and HF Sinclair Corp, you can compare the effects of market volatilities on Axalta Coating 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 Axalta Coating with a short position of HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axalta Coating and HF Sinclair.
Diversification Opportunities for Axalta Coating and HF Sinclair
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Axalta and DINO is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Axalta Coating Systems 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 Axalta Coating 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 Axalta Coating Systems 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 Axalta Coating i.e., Axalta Coating and HF Sinclair go up and down completely randomly.
Pair Corralation between Axalta Coating and HF Sinclair
Given the investment horizon of 90 days Axalta Coating Systems is expected to generate 0.78 times more return on investment than HF Sinclair. However, Axalta Coating Systems is 1.28 times less risky than HF Sinclair. It trades about 0.06 of its potential returns per unit of risk. HF Sinclair Corp is currently generating about -0.05 per unit of risk. If you would invest 3,100 in Axalta Coating Systems on September 14, 2024 and sell it today you would earn a total of 717.00 from holding Axalta Coating Systems or generate 23.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axalta Coating Systems vs. HF Sinclair Corp
Performance |
| Timeline |
| Axalta Coating Systems |
| HF Sinclair Corp |
Axalta Coating and HF Sinclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axalta Coating and HF Sinclair
The main advantage of trading using opposite Axalta Coating and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axalta Coating 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.| Axalta Coating vs. Avient Corp | Axalta Coating vs. H B Fuller | Axalta Coating vs. Quaker Chemical | Axalta Coating vs. Cabot |
| HF Sinclair vs. Delek Energy | HF Sinclair vs. Crossamerica Partners LP | HF Sinclair vs. Par Pacific Holdings | HF Sinclair vs. Valvoline |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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