Correlation Between Citigroup and HF Sinclair
Can any of the company-specific risk be diversified away by investing in both Citigroup 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 Citigroup and HF Sinclair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and HF Sinclair Corp, you can compare the effects of market volatilities on Citigroup 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 Citigroup with a short position of HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and HF Sinclair.
Diversification Opportunities for Citigroup and HF Sinclair
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and DINO is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup 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 Citigroup 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 Citigroup 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 Citigroup i.e., Citigroup and HF Sinclair go up and down completely randomly.
Pair Corralation between Citigroup and HF Sinclair
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.86 times more return on investment than HF Sinclair. However, Citigroup is 1.16 times less risky than HF Sinclair. It trades about 0.11 of its potential returns per unit of risk. HF Sinclair Corp is currently generating about -0.03 per unit of risk. If you would invest 4,553 in Citigroup on August 27, 2024 and sell it today you would earn a total of 2,431 from holding Citigroup or generate 53.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. HF Sinclair Corp
Performance |
| Timeline |
| Citigroup |
| HF Sinclair Corp |
Citigroup and HF Sinclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and HF Sinclair
The main advantage of trading using opposite Citigroup and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup 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.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |