Correlation Between HF Sinclair and FTAC Emerald
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and FTAC Emerald 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 FTAC Emerald 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 FTAC Emerald Acquisition, you can compare the effects of market volatilities on HF Sinclair and FTAC Emerald 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 FTAC Emerald. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and FTAC Emerald.
Diversification Opportunities for HF Sinclair and FTAC Emerald
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DINO and FTAC is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and FTAC Emerald Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAC Emerald Acquisition 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 FTAC Emerald. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAC Emerald Acquisition has no effect on the direction of HF Sinclair i.e., HF Sinclair and FTAC Emerald go up and down completely randomly.
Pair Corralation between HF Sinclair and FTAC Emerald
Given the investment horizon of 90 days HF Sinclair Corp is expected to under-perform the FTAC Emerald. In addition to that, HF Sinclair is 7.14 times more volatile than FTAC Emerald Acquisition. It trades about 0.0 of its total potential returns per unit of risk. FTAC Emerald Acquisition is currently generating about 0.08 per unit of volatility. If you would invest 998.00 in FTAC Emerald Acquisition on September 3, 2024 and sell it today you would earn a total of 119.00 from holding FTAC Emerald Acquisition or generate 11.92% 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. FTAC Emerald Acquisition
Performance |
| Timeline |
| HF Sinclair Corp |
| FTAC Emerald Acquisition |
HF Sinclair and FTAC Emerald Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and FTAC Emerald
The main advantage of trading using opposite HF Sinclair and FTAC Emerald positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, FTAC Emerald 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 FTAC Emerald will offset losses from the drop in FTAC Emerald's long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
| FTAC Emerald vs. Verde Clean Fuels | FTAC Emerald vs. Summit Materials | FTAC Emerald vs. Ainsworth Game Technology | FTAC Emerald vs. Evolution Gaming Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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