Correlation Between HF Sinclair and Safety Shot
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Safety Shot 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 Safety Shot 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 Safety Shot, you can compare the effects of market volatilities on HF Sinclair and Safety Shot 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 Safety Shot. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Safety Shot.
Diversification Opportunities for HF Sinclair and Safety Shot
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DINO and Safety is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Safety Shot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safety Shot 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 Safety Shot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safety Shot has no effect on the direction of HF Sinclair i.e., HF Sinclair and Safety Shot go up and down completely randomly.
Pair Corralation between HF Sinclair and Safety Shot
Given the investment horizon of 90 days HF Sinclair Corp is expected to generate 0.34 times more return on investment than Safety Shot. However, HF Sinclair Corp is 2.94 times less risky than Safety Shot. It trades about -0.6 of its potential returns per unit of risk. Safety Shot is currently generating about -0.27 per unit of risk. If you would invest 4,179 in HF Sinclair Corp on September 20, 2024 and sell it today you would lose (812.00) from holding HF Sinclair Corp or give up 19.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF Sinclair Corp vs. Safety Shot
Performance |
| Timeline |
| HF Sinclair Corp |
| Safety Shot |
HF Sinclair and Safety Shot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Safety Shot
The main advantage of trading using opposite HF Sinclair and Safety Shot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Safety Shot 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 Safety Shot will offset losses from the drop in Safety Shot's long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
| Safety Shot vs. Sellas Life Sciences | Safety Shot vs. Apogee Therapeutics, Common | Safety Shot vs. Biglari Holdings | Safety Shot vs. Tarsus Pharmaceuticals |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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