Correlation Between HF Sinclair and Aozora Bank
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Aozora Bank 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 Aozora Bank 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 Aozora Bank, you can compare the effects of market volatilities on HF Sinclair and Aozora Bank 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 Aozora Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Aozora Bank.
Diversification Opportunities for HF Sinclair and Aozora Bank
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DINO and Aozora is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Aozora Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aozora Bank 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 Aozora Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aozora Bank has no effect on the direction of HF Sinclair i.e., HF Sinclair and Aozora Bank go up and down completely randomly.
Pair Corralation between HF Sinclair and Aozora Bank
If you would invest 1,989 in Aozora Bank on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Aozora Bank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 2.32% |
| Values | Daily Returns |
HF Sinclair Corp vs. Aozora Bank
Performance |
| Timeline |
| HF Sinclair Corp |
| Aozora Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
HF Sinclair and Aozora Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Aozora Bank
The main advantage of trading using opposite HF Sinclair and Aozora Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Aozora Bank 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 Aozora Bank will offset losses from the drop in Aozora Bank's long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
| Aozora Bank vs. SFL Corporation | Aozora Bank vs. HF Sinclair Corp | Aozora Bank vs. Corporacion America Airports | Aozora Bank vs. Mayfair Gold 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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