Correlation Between HF Sinclair and Thai Oil
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Thai Oil 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 Oil 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 Oil PCL, you can compare the effects of market volatilities on HF Sinclair and Thai Oil 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 Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Thai Oil.
Diversification Opportunities for HF Sinclair and Thai Oil
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DINO and Thai is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Thai Oil PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Oil 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 Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Oil PCL has no effect on the direction of HF Sinclair i.e., HF Sinclair and Thai Oil go up and down completely randomly.
Pair Corralation between HF Sinclair and Thai Oil
Given the investment horizon of 90 days HF Sinclair Corp is expected to generate 0.3 times more return on investment than Thai Oil. However, HF Sinclair Corp is 3.29 times less risky than Thai Oil. It trades about 0.0 of its potential returns per unit of risk. Thai Oil PCL is currently generating about -0.02 per unit of risk. If you would invest 4,237 in HF Sinclair Corp on August 27, 2024 and sell it today you would lose (14.00) from holding HF Sinclair Corp or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF Sinclair Corp vs. Thai Oil PCL
Performance |
| Timeline |
| HF Sinclair Corp |
| Thai Oil PCL |
HF Sinclair and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Thai Oil
The main advantage of trading using opposite HF Sinclair and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Thai Oil 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 Oil will offset losses from the drop in Thai Oil'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 Oil vs. Neste Oyj | Thai Oil vs. Cosan SA ADR | Thai Oil vs. Ultrapar Participacoes SA | Thai Oil vs. Delek Logistics Partners |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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