Correlation Between HF Sinclair and SBM Offshore
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and SBM Offshore 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 SBM Offshore 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 SBM Offshore NV, you can compare the effects of market volatilities on HF Sinclair and SBM Offshore 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 SBM Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and SBM Offshore.
Diversification Opportunities for HF Sinclair and SBM Offshore
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DINO and SBM is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and SBM Offshore NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBM Offshore NV 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 SBM Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBM Offshore NV has no effect on the direction of HF Sinclair i.e., HF Sinclair and SBM Offshore go up and down completely randomly.
Pair Corralation between HF Sinclair and SBM Offshore
Given the investment horizon of 90 days HF Sinclair is expected to generate 43.97 times less return on investment than SBM Offshore. But when comparing it to its historical volatility, HF Sinclair Corp is 1.31 times less risky than SBM Offshore. It trades about 0.0 of its potential returns per unit of risk. SBM Offshore NV is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,435 in SBM Offshore NV on September 2, 2024 and sell it today you would earn a total of 445.00 from holding SBM Offshore NV or generate 31.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 63.17% |
| Values | Daily Returns |
HF Sinclair Corp vs. SBM Offshore NV
Performance |
| Timeline |
| HF Sinclair Corp |
| SBM Offshore NV |
HF Sinclair and SBM Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and SBM Offshore
The main advantage of trading using opposite HF Sinclair and SBM Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, SBM Offshore 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 SBM Offshore will offset losses from the drop in SBM Offshore's long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
| SBM Offshore vs. Expro Group Holdings | SBM Offshore vs. ChampionX | SBM Offshore vs. Ranger Energy Services | SBM Offshore vs. Cactus Inc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |