Correlation Between HF Sinclair and Liberty International
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Liberty International 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 Liberty International 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 Liberty International Holding, you can compare the effects of market volatilities on HF Sinclair and Liberty International 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 Liberty International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Liberty International.
Diversification Opportunities for HF Sinclair and Liberty International
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between DINO and Liberty is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Liberty International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty International 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 Liberty International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty International has no effect on the direction of HF Sinclair i.e., HF Sinclair and Liberty International go up and down completely randomly.
Pair Corralation between HF Sinclair and Liberty International
If you would invest 3,436 in HF Sinclair Corp on November 8, 2024 and sell it today you would earn a total of 369.00 from holding HF Sinclair Corp or generate 10.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
HF Sinclair Corp vs. Liberty International Holding
Performance |
| Timeline |
| HF Sinclair Corp |
| Liberty International |
HF Sinclair and Liberty International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Liberty International
The main advantage of trading using opposite HF Sinclair and Liberty International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Liberty International 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 Liberty International will offset losses from the drop in Liberty International's long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
| Liberty International vs. Summit Therapeutics PLC | Liberty International vs. Waste Management | Liberty International vs. FS KKR Capital | Liberty International vs. Greentown Management Holdings |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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