Correlation Between HF Sinclair and Thai Beverage
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Thai 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 Thai 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 Thai Beverage PCL, you can compare the effects of market volatilities on HF Sinclair and Thai 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 Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Thai Beverage.
Diversification Opportunities for HF Sinclair and Thai Beverage
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DINO and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Thai Beverage PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Beverage PCL 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 Thai Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Beverage PCL has no effect on the direction of HF Sinclair i.e., HF Sinclair and Thai Beverage go up and down completely randomly.
Pair Corralation between HF Sinclair and Thai Beverage
Given the investment horizon of 90 days HF Sinclair Corp is expected to under-perform the Thai Beverage. In addition to that, HF Sinclair is 1.59 times more volatile than Thai Beverage PCL. It trades about -0.09 of its total potential returns per unit of risk. Thai Beverage PCL is currently generating about -0.09 per unit of volatility. If you would invest 3,924 in Thai Beverage PCL on September 3, 2024 and sell it today you would lose (557.00) from holding Thai Beverage PCL or give up 14.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
HF Sinclair Corp vs. Thai Beverage PCL
Performance |
| Timeline |
| HF Sinclair Corp |
| Thai Beverage PCL |
HF Sinclair and Thai Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Thai Beverage
The main advantage of trading using opposite HF Sinclair and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Thai 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 Thai Beverage will offset losses from the drop in Thai 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 |
| Thai Beverage vs. Andrew Peller Limited | Thai Beverage vs. Aristocrat Group Corp | Thai Beverage vs. Iconic Brands | Thai Beverage vs. Naked Wines plc |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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