Correlation Between HF Sinclair and Marine Bancorp
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Marine Bancorp 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 Marine Bancorp 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 Marine Bancorp of, you can compare the effects of market volatilities on HF Sinclair and Marine Bancorp 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 Marine Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Marine Bancorp.
Diversification Opportunities for HF Sinclair and Marine Bancorp
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DINO and Marine is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Marine Bancorp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Bancorp 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 Marine Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Bancorp has no effect on the direction of HF Sinclair i.e., HF Sinclair and Marine Bancorp go up and down completely randomly.
Pair Corralation between HF Sinclair and Marine Bancorp
Given the investment horizon of 90 days HF Sinclair Corp is expected to generate 5.37 times more return on investment than Marine Bancorp. However, HF Sinclair is 5.37 times more volatile than Marine Bancorp of. It trades about 0.11 of its potential returns per unit of risk. Marine Bancorp of is currently generating about 0.12 per unit of risk. If you would invest 3,440 in HF Sinclair Corp on October 25, 2024 and sell it today you would earn a total of 104.00 from holding HF Sinclair Corp or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF Sinclair Corp vs. Marine Bancorp of
Performance |
| Timeline |
| HF Sinclair Corp |
| Marine Bancorp |
HF Sinclair and Marine Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Marine Bancorp
The main advantage of trading using opposite HF Sinclair and Marine Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Marine Bancorp 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 Marine Bancorp will offset losses from the drop in Marine Bancorp's long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
| Marine Bancorp vs. Naked Wines plc | Marine Bancorp vs. Delta Air Lines | Marine Bancorp vs. Vodka Brands Corp | Marine Bancorp vs. Constellation Brands Class |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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