Correlation Between DCC PLC and HF Sinclair
Can any of the company-specific risk be diversified away by investing in both DCC PLC 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 DCC PLC and HF Sinclair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DCC PLC ADR and HF Sinclair Corp, you can compare the effects of market volatilities on DCC PLC 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 DCC PLC with a short position of HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of DCC PLC and HF Sinclair.
Diversification Opportunities for DCC PLC and HF Sinclair
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DCC and DINO is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding DCC PLC ADR 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 DCC PLC 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 DCC PLC ADR 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 DCC PLC i.e., DCC PLC and HF Sinclair go up and down completely randomly.
Pair Corralation between DCC PLC and HF Sinclair
Assuming the 90 days horizon DCC PLC ADR is expected to generate 0.08 times more return on investment than HF Sinclair. However, DCC PLC ADR is 11.93 times less risky than HF Sinclair. It trades about 0.09 of its potential returns per unit of risk. HF Sinclair Corp is currently generating about -0.09 per unit of risk. If you would invest 2,213 in DCC PLC ADR on September 5, 2024 and sell it today you would earn a total of 42.00 from holding DCC PLC ADR or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DCC PLC ADR vs. HF Sinclair Corp
Performance |
| Timeline |
| DCC PLC ADR |
| HF Sinclair Corp |
DCC PLC and HF Sinclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DCC PLC and HF Sinclair
The main advantage of trading using opposite DCC PLC and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DCC PLC 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.| DCC PLC vs. Ultrapar Participacoes SA | DCC PLC vs. Sunoco LP | DCC PLC vs. HF Sinclair Corp | DCC PLC vs. Delek Energy |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |