Correlation Between HF Sinclair and Hamilton Insurance
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Hamilton Insurance 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 Hamilton Insurance 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 Hamilton Insurance Group,, you can compare the effects of market volatilities on HF Sinclair and Hamilton Insurance 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 Hamilton Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Hamilton Insurance.
Diversification Opportunities for HF Sinclair and Hamilton Insurance
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DINO and Hamilton is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Hamilton Insurance Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Insurance Group, 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 Hamilton Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Insurance Group, has no effect on the direction of HF Sinclair i.e., HF Sinclair and Hamilton Insurance go up and down completely randomly.
Pair Corralation between HF Sinclair and Hamilton Insurance
Given the investment horizon of 90 days HF Sinclair is expected to generate 4.29 times less return on investment than Hamilton Insurance. In addition to that, HF Sinclair is 1.29 times more volatile than Hamilton Insurance Group,. It trades about 0.05 of its total potential returns per unit of risk. Hamilton Insurance Group, is currently generating about 0.25 per unit of volatility. If you would invest 1,737 in Hamilton Insurance Group, on August 30, 2024 and sell it today you would earn a total of 164.00 from holding Hamilton Insurance Group, or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
HF Sinclair Corp vs. Hamilton Insurance Group,
Performance |
| Timeline |
| HF Sinclair Corp |
| Hamilton Insurance Group, |
HF Sinclair and Hamilton Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Hamilton Insurance
The main advantage of trading using opposite HF Sinclair and Hamilton Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Hamilton Insurance 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 Hamilton Insurance will offset losses from the drop in Hamilton Insurance's long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. Crossamerica Partners LP | HF Sinclair vs. Par Pacific Holdings | HF Sinclair vs. Valvoline |
| Hamilton Insurance vs. Discover Financial Services | Hamilton Insurance vs. Insteel Industries | Hamilton Insurance vs. Encore Capital Group | Hamilton Insurance vs. Kaiser Aluminum |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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