Correlation Between HF Sinclair and Aemetis
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Aemetis 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 HF Sinclair and Aemetis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HF Sinclair Corp and Aemetis, you can compare the effects of market volatilities on HF Sinclair and Aemetis 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 HF Sinclair with a short position of Aemetis. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Aemetis.
Diversification Opportunities for HF Sinclair and Aemetis
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DINO and Aemetis is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Aemetis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aemetis and HF Sinclair 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 HF Sinclair Corp are associated (or correlated) with Aemetis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aemetis has no effect on the direction of HF Sinclair i.e., HF Sinclair and Aemetis go up and down completely randomly.
Pair Corralation between HF Sinclair and Aemetis
Given the investment horizon of 90 days HF Sinclair Corp is expected to generate 0.43 times more return on investment than Aemetis. However, HF Sinclair Corp is 2.31 times less risky than Aemetis. It trades about 0.12 of its potential returns per unit of risk. Aemetis is currently generating about -0.24 per unit of risk. If you would invest 3,477 in HF Sinclair Corp on November 9, 2024 and sell it today you would earn a total of 191.00 from holding HF Sinclair Corp or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF Sinclair Corp vs. Aemetis
Performance |
| Timeline |
| HF Sinclair Corp |
| Aemetis |
HF Sinclair and Aemetis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Aemetis
The main advantage of trading using opposite HF Sinclair and Aemetis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Aemetis 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 Aemetis will offset losses from the drop in Aemetis' long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
| Aemetis vs. PBF Energy | Aemetis vs. Clean Energy Fuels | Aemetis vs. Par Pacific Holdings | Aemetis vs. CVR Energy |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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