Correlation Between HF Sinclair and Idemitsu Kosan
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Idemitsu Kosan 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 Idemitsu Kosan 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 Idemitsu Kosan CoLtd, you can compare the effects of market volatilities on HF Sinclair and Idemitsu Kosan 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 Idemitsu Kosan. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Idemitsu Kosan.
Diversification Opportunities for HF Sinclair and Idemitsu Kosan
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between DINO and Idemitsu is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Idemitsu Kosan CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Idemitsu Kosan CoLtd 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 Idemitsu Kosan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Idemitsu Kosan CoLtd has no effect on the direction of HF Sinclair i.e., HF Sinclair and Idemitsu Kosan go up and down completely randomly.
Pair Corralation between HF Sinclair and Idemitsu Kosan
Given the investment horizon of 90 days HF Sinclair Corp is expected to generate 1.98 times more return on investment than Idemitsu Kosan. However, HF Sinclair is 1.98 times more volatile than Idemitsu Kosan CoLtd. It trades about 0.25 of its potential returns per unit of risk. Idemitsu Kosan CoLtd is currently generating about -0.31 per unit of risk. If you would invest 3,413 in HF Sinclair Corp on October 22, 2024 and sell it today you would earn a total of 220.00 from holding HF Sinclair Corp or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
HF Sinclair Corp vs. Idemitsu Kosan CoLtd
Performance |
| Timeline |
| HF Sinclair Corp |
| Idemitsu Kosan CoLtd |
HF Sinclair and Idemitsu Kosan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Idemitsu Kosan
The main advantage of trading using opposite HF Sinclair and Idemitsu Kosan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Idemitsu Kosan 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 Idemitsu Kosan will offset losses from the drop in Idemitsu Kosan's long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
| Idemitsu Kosan vs. Eneos Holdings ADR | Idemitsu Kosan vs. HF Sinclair Corp | Idemitsu Kosan vs. Idemitsu Kosan Co | Idemitsu Kosan vs. PBF Energy |
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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