Correlation Between HF Sinclair and Rubis
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Rubis 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 Rubis 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 Rubis, you can compare the effects of market volatilities on HF Sinclair and Rubis 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 Rubis. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Rubis.
Diversification Opportunities for HF Sinclair and Rubis
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DINO and Rubis is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Rubis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubis 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 Rubis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubis has no effect on the direction of HF Sinclair i.e., HF Sinclair and Rubis go up and down completely randomly.
Pair Corralation between HF Sinclair and Rubis
Given the investment horizon of 90 days HF Sinclair Corp is expected to under-perform the Rubis. But the stock apears to be less risky and, when comparing its historical volatility, HF Sinclair Corp is 1.05 times less risky than Rubis. The stock trades about -0.01 of its potential returns per unit of risk. The Rubis is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,571 in Rubis on September 12, 2024 and sell it today you would lose (71.00) from holding Rubis or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 29.29% |
| Values | Daily Returns |
HF Sinclair Corp vs. Rubis
Performance |
| Timeline |
| HF Sinclair Corp |
| Rubis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
HF Sinclair and Rubis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Rubis
The main advantage of trading using opposite HF Sinclair and Rubis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Rubis 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 Rubis will offset losses from the drop in Rubis' long position.| HF Sinclair vs. Delek Logistics Partners | HF Sinclair vs. CVR Energy | HF Sinclair vs. Star Gas Partners | HF Sinclair vs. Ultrapar Participacoes SA |
| Rubis vs. DCC PLC ADR | Rubis vs. Ultrapar Participacoes SA | Rubis vs. Sunoco LP | Rubis vs. HF Sinclair Corp |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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