Correlation Between HF Sinclair and Delek Logistics
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Delek Logistics 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 Delek Logistics 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 Delek Logistics Partners, you can compare the effects of market volatilities on HF Sinclair and Delek Logistics 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 Delek Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Delek Logistics.
Diversification Opportunities for HF Sinclair and Delek Logistics
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DINO and Delek is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Delek Logistics Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Logistics Partners 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 Delek Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Logistics Partners has no effect on the direction of HF Sinclair i.e., HF Sinclair and Delek Logistics go up and down completely randomly.
Pair Corralation between HF Sinclair and Delek Logistics
Given the investment horizon of 90 days HF Sinclair Corp is expected to generate 2.29 times more return on investment than Delek Logistics. However, HF Sinclair is 2.29 times more volatile than Delek Logistics Partners. It trades about 0.09 of its potential returns per unit of risk. Delek Logistics Partners is currently generating about -0.2 per unit of risk. If you would invest 3,633 in HF Sinclair Corp on November 18, 2024 and sell it today you would earn a total of 168.00 from holding HF Sinclair Corp or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF Sinclair Corp vs. Delek Logistics Partners
Performance |
| Timeline |
| HF Sinclair Corp |
| Delek Logistics Partners |
HF Sinclair and Delek Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Delek Logistics
The main advantage of trading using opposite HF Sinclair and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Delek Logistics 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 Delek Logistics will offset losses from the drop in Delek Logistics' long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
| Delek Logistics vs. CVR Energy | Delek Logistics vs. PBF Energy | Delek Logistics vs. HF Sinclair Corp | Delek Logistics 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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