Correlation Between HF Sinclair and Independence Contract
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Independence Contract 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 Independence Contract 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 Independence Contract Drilling,, you can compare the effects of market volatilities on HF Sinclair and Independence Contract 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 Independence Contract. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Independence Contract.
Diversification Opportunities for HF Sinclair and Independence Contract
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DINO and Independence is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Independence Contract Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Independence Contract 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 Independence Contract. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Independence Contract has no effect on the direction of HF Sinclair i.e., HF Sinclair and Independence Contract go up and down completely randomly.
Pair Corralation between HF Sinclair and Independence Contract
If you would invest (100.00) in Independence Contract Drilling, on December 4, 2024 and sell it today you would earn a total of 100.00 from holding Independence Contract Drilling, or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
HF Sinclair Corp vs. Independence Contract Drilling
Performance |
| Timeline |
| HF Sinclair Corp |
| Independence Contract |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
HF Sinclair and Independence Contract Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Independence Contract
The main advantage of trading using opposite HF Sinclair and Independence Contract positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Independence Contract 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 Independence Contract will offset losses from the drop in Independence Contract's long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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