Correlation Between HF Sinclair and IB Acquisition
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and IB Acquisition 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 IB Acquisition 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 IB Acquisition Corp, you can compare the effects of market volatilities on HF Sinclair and IB Acquisition 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 IB Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and IB Acquisition.
Diversification Opportunities for HF Sinclair and IB Acquisition
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DINO and IBACR is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and IB Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IB Acquisition Corp 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 IB Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IB Acquisition Corp has no effect on the direction of HF Sinclair i.e., HF Sinclair and IB Acquisition go up and down completely randomly.
Pair Corralation between HF Sinclair and IB Acquisition
Given the investment horizon of 90 days HF Sinclair Corp is expected to generate 0.08 times more return on investment than IB Acquisition. However, HF Sinclair Corp is 12.61 times less risky than IB Acquisition. It trades about -0.34 of its potential returns per unit of risk. IB Acquisition Corp is currently generating about -0.09 per unit of risk. If you would invest 4,192 in HF Sinclair Corp on September 14, 2024 and sell it today you would lose (376.00) from holding HF Sinclair Corp or give up 8.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
HF Sinclair Corp vs. IB Acquisition Corp
Performance |
| Timeline |
| HF Sinclair Corp |
| IB Acquisition Corp |
HF Sinclair and IB Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and IB Acquisition
The main advantage of trading using opposite HF Sinclair and IB Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, IB Acquisition 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 IB Acquisition will offset losses from the drop in IB Acquisition's long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. Crossamerica Partners LP | HF Sinclair vs. Par Pacific Holdings | HF Sinclair vs. Valvoline |
| IB Acquisition vs. Perseus Mining Limited | IB Acquisition vs. Mesa Air Group | IB Acquisition vs. HF Sinclair Corp | IB Acquisition vs. Westinghouse Air Brake |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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