Correlation Between Brookfield Finance and HF Sinclair
Can any of the company-specific risk be diversified away by investing in both Brookfield Finance 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 Brookfield Finance and HF Sinclair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Finance I and HF Sinclair Corp, you can compare the effects of market volatilities on Brookfield Finance 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 Brookfield Finance with a short position of HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Finance and HF Sinclair.
Diversification Opportunities for Brookfield Finance and HF Sinclair
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brookfield and DINO is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Finance I 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 Brookfield Finance 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 Brookfield Finance I 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 Brookfield Finance i.e., Brookfield Finance and HF Sinclair go up and down completely randomly.
Pair Corralation between Brookfield Finance and HF Sinclair
If you would invest 1,506 in Brookfield Finance I on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Brookfield Finance I or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Brookfield Finance I vs. HF Sinclair Corp
Performance |
| Timeline |
| Brookfield Finance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| HF Sinclair Corp |
Brookfield Finance and HF Sinclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Finance and HF Sinclair
The main advantage of trading using opposite Brookfield Finance and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Finance 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.| Brookfield Finance vs. Amkor Technology | Brookfield Finance vs. Lipocine | Brookfield Finance vs. Merit Medical Systems | Brookfield Finance vs. HUTCHMED DRC |
| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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