Correlation Between HF Sinclair and EvoAir Holdings
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and EvoAir Holdings 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 EvoAir Holdings 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 EvoAir Holdings, you can compare the effects of market volatilities on HF Sinclair and EvoAir Holdings 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 EvoAir Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and EvoAir Holdings.
Diversification Opportunities for HF Sinclair and EvoAir Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DINO and EvoAir is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and EvoAir Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EvoAir Holdings 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 EvoAir Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EvoAir Holdings has no effect on the direction of HF Sinclair i.e., HF Sinclair and EvoAir Holdings go up and down completely randomly.
Pair Corralation between HF Sinclair and EvoAir Holdings
Given the investment horizon of 90 days HF Sinclair Corp is expected to under-perform the EvoAir Holdings. In addition to that, HF Sinclair is 7.42 times more volatile than EvoAir Holdings. It trades about -0.05 of its total potential returns per unit of risk. EvoAir Holdings is currently generating about 0.06 per unit of volatility. If you would invest 2,204 in EvoAir Holdings on November 9, 2024 and sell it today you would earn a total of 96.00 from holding EvoAir Holdings or generate 4.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF Sinclair Corp vs. EvoAir Holdings
Performance |
| Timeline |
| HF Sinclair Corp |
| EvoAir Holdings |
HF Sinclair and EvoAir Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and EvoAir Holdings
The main advantage of trading using opposite HF Sinclair and EvoAir Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, EvoAir Holdings 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 EvoAir Holdings will offset losses from the drop in EvoAir Holdings' long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
| EvoAir Holdings vs. El Pollo Loco | EvoAir Holdings vs. Oasis Hotel Resort | EvoAir Holdings vs. Playa Hotels Resorts | EvoAir Holdings vs. Uranium Energy 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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