Correlation Between HF Sinclair and Navient SR
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Navient SR 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 Navient SR 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 Navient SR, you can compare the effects of market volatilities on HF Sinclair and Navient SR 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 Navient SR. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Navient SR.
Diversification Opportunities for HF Sinclair and Navient SR
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DINO and Navient is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Navient SR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navient SR 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 Navient SR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navient SR has no effect on the direction of HF Sinclair i.e., HF Sinclair and Navient SR go up and down completely randomly.
Pair Corralation between HF Sinclair and Navient SR
Given the investment horizon of 90 days HF Sinclair Corp is expected to generate 3.52 times more return on investment than Navient SR. However, HF Sinclair is 3.52 times more volatile than Navient SR. It trades about 0.12 of its potential returns per unit of risk. Navient SR is currently generating about 0.09 per unit of risk. If you would invest 3,477 in HF Sinclair Corp on November 9, 2024 and sell it today you would earn a total of 191.00 from holding HF Sinclair Corp or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF Sinclair Corp vs. Navient SR
Performance |
| Timeline |
| HF Sinclair Corp |
| Navient SR |
HF Sinclair and Navient SR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Navient SR
The main advantage of trading using opposite HF Sinclair and Navient SR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Navient SR 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 Navient SR will offset losses from the drop in Navient SR's long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
| Navient SR vs. Fifth Third Bancorp | Navient SR vs. Popular Capital Trust | Navient SR vs. SLM Corp Pb | Navient SR vs. CHS Inc CM |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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