Correlation Between GOLD ROAD and HF SINCLAIR
Can any of the company-specific risk be diversified away by investing in both GOLD ROAD 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 GOLD ROAD and HF SINCLAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GOLD ROAD RES and HF SINCLAIR P, you can compare the effects of market volatilities on GOLD ROAD 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 GOLD ROAD with a short position of HF SINCLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOLD ROAD and HF SINCLAIR.
Diversification Opportunities for GOLD ROAD and HF SINCLAIR
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GOLD and HL80 is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding GOLD ROAD RES 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 GOLD ROAD 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 GOLD ROAD RES 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 GOLD ROAD i.e., GOLD ROAD and HF SINCLAIR go up and down completely randomly.
Pair Corralation between GOLD ROAD and HF SINCLAIR
Assuming the 90 days trading horizon GOLD ROAD RES is expected to under-perform the HF SINCLAIR. In addition to that, GOLD ROAD is 1.13 times more volatile than HF SINCLAIR P. It trades about -0.01 of its total potential returns per unit of risk. HF SINCLAIR P is currently generating about 0.11 per unit of volatility. If you would invest 3,673 in HF SINCLAIR P on August 31, 2024 and sell it today you would earn a total of 167.00 from holding HF SINCLAIR P or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GOLD ROAD RES vs. HF SINCLAIR P
Performance |
| Timeline |
| GOLD ROAD RES |
| HF SINCLAIR P |
GOLD ROAD and HF SINCLAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOLD ROAD and HF SINCLAIR
The main advantage of trading using opposite GOLD ROAD and HF SINCLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOLD ROAD 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.| GOLD ROAD vs. Tsingtao Brewery | GOLD ROAD vs. MOLSON RS BEVERAGE | GOLD ROAD vs. COMBA TELECOM SYST | GOLD ROAD vs. SBA Communications Corp |
| HF SINCLAIR vs. Superior Plus Corp | HF SINCLAIR vs. NMI Holdings | HF SINCLAIR vs. Origin Agritech | HF SINCLAIR vs. SIVERS SEMICONDUCTORS AB |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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