Correlation Between HF Sinclair and CAVA Group,
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and CAVA Group, 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 CAVA Group, 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 CAVA Group,, you can compare the effects of market volatilities on HF Sinclair and CAVA Group, 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 CAVA Group,. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and CAVA Group,.
Diversification Opportunities for HF Sinclair and CAVA Group,
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DINO and CAVA is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and CAVA Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVA Group, 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 CAVA Group,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAVA Group, has no effect on the direction of HF Sinclair i.e., HF Sinclair and CAVA Group, go up and down completely randomly.
Pair Corralation between HF Sinclair and CAVA Group,
Given the investment horizon of 90 days HF Sinclair Corp is expected to generate 0.37 times more return on investment than CAVA Group,. However, HF Sinclair Corp is 2.73 times less risky than CAVA Group,. It trades about -0.3 of its potential returns per unit of risk. CAVA Group, is currently generating about -0.15 per unit of risk. If you would invest 4,157 in HF Sinclair Corp on September 13, 2024 and sell it today you would lose (347.00) from holding HF Sinclair Corp or give up 8.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF Sinclair Corp vs. CAVA Group,
Performance |
| Timeline |
| HF Sinclair Corp |
| CAVA Group, |
HF Sinclair and CAVA Group, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and CAVA Group,
The main advantage of trading using opposite HF Sinclair and CAVA Group, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, CAVA Group, 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 CAVA Group, will offset losses from the drop in CAVA Group,'s long position.| 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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