Correlation Between HF Sinclair and Sonida Senior
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Sonida Senior 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 Sonida Senior 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 Sonida Senior Living, you can compare the effects of market volatilities on HF Sinclair and Sonida Senior 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 Sonida Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Sonida Senior.
Diversification Opportunities for HF Sinclair and Sonida Senior
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DINO and Sonida is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Sonida Senior Living in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonida Senior Living 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 Sonida Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonida Senior Living has no effect on the direction of HF Sinclair i.e., HF Sinclair and Sonida Senior go up and down completely randomly.
Pair Corralation between HF Sinclair and Sonida Senior
Given the investment horizon of 90 days HF Sinclair is expected to generate 93.22 times less return on investment than Sonida Senior. But when comparing it to its historical volatility, HF Sinclair Corp is 2.32 times less risky than Sonida Senior. It trades about 0.0 of its potential returns per unit of risk. Sonida Senior Living is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,600 in Sonida Senior Living on August 30, 2024 and sell it today you would earn a total of 983.00 from holding Sonida Senior Living or generate 61.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
HF Sinclair Corp vs. Sonida Senior Living
Performance |
| Timeline |
| HF Sinclair Corp |
| Sonida Senior Living |
HF Sinclair and Sonida Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Sonida Senior
The main advantage of trading using opposite HF Sinclair and Sonida Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Sonida Senior 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 Sonida Senior will offset losses from the drop in Sonida Senior's long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. Crossamerica Partners LP | HF Sinclair vs. Par Pacific Holdings | HF Sinclair vs. Valvoline |
| Sonida Senior vs. ReShape Lifesciences | Sonida Senior vs. Bone Biologics Corp | Sonida Senior vs. Tivic Health Systems | Sonida Senior vs. Nuwellis |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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