Correlation Between HF Sinclair and PEPSICO
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By analyzing existing cross correlation between HF Sinclair Corp and PEPSICO INC 3, you can compare the effects of market volatilities on HF Sinclair and PEPSICO 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 PEPSICO. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and PEPSICO.
Diversification Opportunities for HF Sinclair and PEPSICO
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DINO and PEPSICO is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and PEPSICO INC 3 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEPSICO INC 3 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 PEPSICO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEPSICO INC 3 has no effect on the direction of HF Sinclair i.e., HF Sinclair and PEPSICO go up and down completely randomly.
Pair Corralation between HF Sinclair and PEPSICO
Given the investment horizon of 90 days HF Sinclair Corp is expected to generate 3.86 times more return on investment than PEPSICO. However, HF Sinclair is 3.86 times more volatile than PEPSICO INC 3. It trades about 0.13 of its potential returns per unit of risk. PEPSICO INC 3 is currently generating about -0.19 per unit of risk. If you would invest 3,855 in HF Sinclair Corp on September 4, 2024 and sell it today you would earn a total of 193.00 from holding HF Sinclair Corp or generate 5.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF Sinclair Corp vs. PEPSICO INC 3
Performance |
| Timeline |
| HF Sinclair Corp |
| PEPSICO INC 3 |
HF Sinclair and PEPSICO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and PEPSICO
The main advantage of trading using opposite HF Sinclair and PEPSICO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, PEPSICO 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 PEPSICO will offset losses from the drop in PEPSICO's long position.| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
| PEPSICO vs. Diageo PLC ADR | PEPSICO vs. Mayfair Gold Corp | PEPSICO vs. HF Sinclair Corp | PEPSICO vs. Alaska Air Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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