Correlation Between HF Sinclair and Suntory Beverage
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Suntory Beverage 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 Suntory Beverage 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 Suntory Beverage Food, you can compare the effects of market volatilities on HF Sinclair and Suntory Beverage 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 Suntory Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Suntory Beverage.
Diversification Opportunities for HF Sinclair and Suntory Beverage
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DINO and Suntory is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Suntory Beverage Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suntory Beverage Food 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 Suntory Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suntory Beverage Food has no effect on the direction of HF Sinclair i.e., HF Sinclair and Suntory Beverage go up and down completely randomly.
Pair Corralation between HF Sinclair and Suntory Beverage
Given the investment horizon of 90 days HF Sinclair Corp is expected to under-perform the Suntory Beverage. In addition to that, HF Sinclair is 1.1 times more volatile than Suntory Beverage Food. It trades about -0.09 of its total potential returns per unit of risk. Suntory Beverage Food is currently generating about -0.02 per unit of volatility. If you would invest 1,809 in Suntory Beverage Food on September 3, 2024 and sell it today you would lose (122.00) from holding Suntory Beverage Food or give up 6.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF Sinclair Corp vs. Suntory Beverage Food
Performance |
| Timeline |
| HF Sinclair Corp |
| Suntory Beverage Food |
HF Sinclair and Suntory Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Suntory Beverage
The main advantage of trading using opposite HF Sinclair and Suntory Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Suntory Beverage 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 Suntory Beverage will offset losses from the drop in Suntory Beverage's long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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