Correlation Between HF Sinclair and Vera Bradley
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Vera Bradley 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 Vera Bradley 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 Vera Bradley, you can compare the effects of market volatilities on HF Sinclair and Vera Bradley 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 Vera Bradley. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Vera Bradley.
Diversification Opportunities for HF Sinclair and Vera Bradley
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DINO and Vera is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Vera Bradley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vera Bradley 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 Vera Bradley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vera Bradley has no effect on the direction of HF Sinclair i.e., HF Sinclair and Vera Bradley go up and down completely randomly.
Pair Corralation between HF Sinclair and Vera Bradley
Given the investment horizon of 90 days HF Sinclair Corp is expected to generate 0.63 times more return on investment than Vera Bradley. However, HF Sinclair Corp is 1.6 times less risky than Vera Bradley. It trades about -0.12 of its potential returns per unit of risk. Vera Bradley is currently generating about -0.23 per unit of risk. If you would invest 3,060 in HF Sinclair Corp on January 4, 2025 and sell it today you would lose (311.00) from holding HF Sinclair Corp or give up 10.16% 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. Vera Bradley
Performance |
| Timeline |
| HF Sinclair Corp |
| Vera Bradley |
HF Sinclair and Vera Bradley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Vera Bradley
The main advantage of trading using opposite HF Sinclair and Vera Bradley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Vera Bradley 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 Vera Bradley will offset losses from the drop in Vera Bradley's long position.| HF Sinclair vs. Crossamerica Partners LP | HF Sinclair vs. Sunoco LP | HF Sinclair vs. CVR Energy | HF Sinclair vs. Phillips 66 |
| Vera Bradley vs. Rocky Brands | Vera Bradley vs. Steven Madden | Vera Bradley vs. Wolverine World Wide | Vera Bradley vs. Caleres |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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