Correlation Between HF Sinclair and Consol Energy
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Consol Energy 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 Consol Energy 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 Consol Energy, you can compare the effects of market volatilities on HF Sinclair and Consol Energy 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 Consol Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Consol Energy.
Diversification Opportunities for HF Sinclair and Consol Energy
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DINO and Consol is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Consol Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consol Energy 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 Consol Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consol Energy has no effect on the direction of HF Sinclair i.e., HF Sinclair and Consol Energy go up and down completely randomly.
Pair Corralation between HF Sinclair and Consol Energy
Given the investment horizon of 90 days HF Sinclair is expected to generate 9.53 times less return on investment than Consol Energy. But when comparing it to its historical volatility, HF Sinclair Corp is 1.49 times less risky than Consol Energy. It trades about 0.04 of its potential returns per unit of risk. Consol Energy is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 10,944 in Consol Energy on August 31, 2024 and sell it today you would earn a total of 2,195 from holding Consol Energy or generate 20.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
HF Sinclair Corp vs. Consol Energy
Performance |
Timeline |
HF Sinclair Corp |
Consol Energy |
HF Sinclair and Consol Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HF Sinclair and Consol Energy
The main advantage of trading using opposite HF Sinclair and Consol Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Consol Energy 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 Consol Energy will offset losses from the drop in Consol Energy's long position.HF Sinclair vs. Delek Logistics Partners | HF Sinclair vs. PBF Energy | HF Sinclair vs. Par Pacific Holdings | HF Sinclair vs. Delek Energy |
Consol Energy vs. Alliance Resource Partners | Consol Energy vs. Natural Resource Partners | Consol Energy vs. Hallador Energy | Consol Energy vs. NACCO Industries |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |