Correlation Between DSV Panalpina and HF SINCLAIR
Can any of the company-specific risk be diversified away by investing in both DSV Panalpina 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 DSV Panalpina and HF SINCLAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSV Panalpina AS and HF SINCLAIR P, you can compare the effects of market volatilities on DSV Panalpina 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 DSV Panalpina with a short position of HF SINCLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSV Panalpina and HF SINCLAIR.
Diversification Opportunities for DSV Panalpina and HF SINCLAIR
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DSV and HL80 is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding DSV Panalpina AS and HF SINCLAIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF SINCLAIR P and DSV Panalpina 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 DSV Panalpina AS 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 P has no effect on the direction of DSV Panalpina i.e., DSV Panalpina and HF SINCLAIR go up and down completely randomly.
Pair Corralation between DSV Panalpina and HF SINCLAIR
Assuming the 90 days trading horizon DSV Panalpina AS is expected to generate 1.18 times more return on investment than HF SINCLAIR. However, DSV Panalpina is 1.18 times more volatile than HF SINCLAIR P. It trades about 0.1 of its potential returns per unit of risk. HF SINCLAIR P is currently generating about -0.22 per unit of risk. If you would invest 19,830 in DSV Panalpina AS on September 13, 2024 and sell it today you would earn a total of 620.00 from holding DSV Panalpina AS or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
DSV Panalpina AS vs. HF SINCLAIR P
Performance |
| Timeline |
| DSV Panalpina AS |
| HF SINCLAIR P |
DSV Panalpina and HF SINCLAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSV Panalpina and HF SINCLAIR
The main advantage of trading using opposite DSV Panalpina and HF SINCLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSV Panalpina 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.| DSV Panalpina vs. BlueScope Steel Limited | DSV Panalpina vs. CECO ENVIRONMENTAL | DSV Panalpina vs. PLAYTIKA HOLDING DL 01 | DSV Panalpina vs. Khiron Life Sciences |
| HF SINCLAIR vs. Superior Plus Corp | HF SINCLAIR vs. SIVERS SEMICONDUCTORS AB | HF SINCLAIR vs. Norsk Hydro ASA | HF SINCLAIR vs. Reliance Steel Aluminum |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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