Correlation Between Daily Journal and HF Sinclair
Can any of the company-specific risk be diversified away by investing in both Daily Journal and HF Sinclair 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 Daily Journal and HF Sinclair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daily Journal Corp and HF Sinclair Corp, you can compare the effects of market volatilities on Daily Journal and HF Sinclair 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 Daily Journal with a short position of HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daily Journal and HF Sinclair.
Diversification Opportunities for Daily Journal and HF Sinclair
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daily and DINO is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Daily Journal Corp and HF Sinclair Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF Sinclair Corp and Daily Journal 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 Daily Journal Corp are associated (or correlated) with HF Sinclair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF Sinclair Corp has no effect on the direction of Daily Journal i.e., Daily Journal and HF Sinclair go up and down completely randomly.
Pair Corralation between Daily Journal and HF Sinclair
Given the investment horizon of 90 days Daily Journal Corp is expected to generate 2.25 times more return on investment than HF Sinclair. However, Daily Journal is 2.25 times more volatile than HF Sinclair Corp. It trades about 0.18 of its potential returns per unit of risk. HF Sinclair Corp is currently generating about 0.2 per unit of risk. If you would invest 49,343 in Daily Journal Corp on September 2, 2024 and sell it today you would earn a total of 7,108 from holding Daily Journal Corp or generate 14.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daily Journal Corp vs. HF Sinclair Corp
Performance |
| Timeline |
| Daily Journal Corp |
| HF Sinclair Corp |
Daily Journal and HF Sinclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daily Journal and HF Sinclair
The main advantage of trading using opposite Daily Journal and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daily Journal position performs unexpectedly, HF Sinclair 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 HF Sinclair will offset losses from the drop in HF Sinclair's long position.| Daily Journal vs. Meridianlink | Daily Journal vs. CoreCard Corp | Daily Journal vs. Enfusion | Daily Journal vs. Issuer Direct Corp |
| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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