Correlation Between HF Sinclair and Murano Global
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Murano Global 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 Murano Global 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 Murano Global Investments, you can compare the effects of market volatilities on HF Sinclair and Murano Global 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 Murano Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Murano Global.
Diversification Opportunities for HF Sinclair and Murano Global
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DINO and Murano is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Murano Global Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Murano Global Investments 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 Murano Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Murano Global Investments has no effect on the direction of HF Sinclair i.e., HF Sinclair and Murano Global go up and down completely randomly.
Pair Corralation between HF Sinclair and Murano Global
Given the investment horizon of 90 days HF Sinclair Corp is expected to under-perform the Murano Global. But the stock apears to be less risky and, when comparing its historical volatility, HF Sinclair Corp is 3.09 times less risky than Murano Global. The stock trades about -0.09 of its potential returns per unit of risk. The Murano Global Investments is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,100 in Murano Global Investments on August 30, 2024 and sell it today you would lose (8.00) from holding Murano Global Investments or give up 0.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF Sinclair Corp vs. Murano Global Investments
Performance |
| Timeline |
| HF Sinclair Corp |
| Murano Global Investments |
HF Sinclair and Murano Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Murano Global
The main advantage of trading using opposite HF Sinclair and Murano Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Murano Global 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 Murano Global will offset losses from the drop in Murano Global's long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. Crossamerica Partners LP | HF Sinclair vs. Par Pacific Holdings | HF Sinclair vs. Valvoline |
| Murano Global vs. Air Lease | Murano Global vs. HF Sinclair Corp | Murano Global vs. Vishay Intertechnology | Murano Global vs. MACOM Technology Solutions |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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