Correlation Between HF Sinclair and CVR Energy
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and CVR 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 CVR 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 CVR Energy, you can compare the effects of market volatilities on HF Sinclair and CVR 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 CVR Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and CVR Energy.
Diversification Opportunities for HF Sinclair and CVR Energy
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between DINO and CVR is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and CVR Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVR 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 CVR Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVR Energy has no effect on the direction of HF Sinclair i.e., HF Sinclair and CVR Energy go up and down completely randomly.
Pair Corralation between HF Sinclair and CVR Energy
Given the investment horizon of 90 days HF Sinclair Corp is expected to under-perform the CVR Energy. But the stock apears to be less risky and, when comparing its historical volatility, HF Sinclair Corp is 1.53 times less risky than CVR Energy. The stock trades about -0.04 of its potential returns per unit of risk. The CVR Energy is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,597 in CVR Energy on November 1, 2024 and sell it today you would earn a total of 310.00 from holding CVR Energy or generate 19.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF Sinclair Corp vs. CVR Energy
Performance |
| Timeline |
| HF Sinclair Corp |
| CVR Energy |
HF Sinclair and CVR Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and CVR Energy
The main advantage of trading using opposite HF Sinclair and CVR Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, CVR 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 CVR Energy will offset losses from the drop in CVR Energy's long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
| CVR Energy vs. Delek Logistics Partners | CVR Energy vs. PBF Energy | CVR Energy vs. HF Sinclair Corp | CVR Energy vs. Par Pacific Holdings |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets |