Correlation Between FORWARD AIR and HF SINCLAIR
Can any of the company-specific risk be diversified away by investing in both FORWARD AIR 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 FORWARD AIR and HF SINCLAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FORWARD AIR P and HF SINCLAIR P, you can compare the effects of market volatilities on FORWARD AIR 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 FORWARD AIR with a short position of HF SINCLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of FORWARD AIR and HF SINCLAIR.
Diversification Opportunities for FORWARD AIR and HF SINCLAIR
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FORWARD and HL80 is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding FORWARD AIR P 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 FORWARD AIR 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 FORWARD AIR P 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 FORWARD AIR i.e., FORWARD AIR and HF SINCLAIR go up and down completely randomly.
Pair Corralation between FORWARD AIR and HF SINCLAIR
Assuming the 90 days horizon FORWARD AIR P is expected to generate 2.46 times more return on investment than HF SINCLAIR. However, FORWARD AIR is 2.46 times more volatile than HF SINCLAIR P. It trades about 0.15 of its potential returns per unit of risk. HF SINCLAIR P is currently generating about -0.08 per unit of risk. If you would invest 1,510 in FORWARD AIR P on September 1, 2024 and sell it today you would earn a total of 1,850 from holding FORWARD AIR P or generate 122.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FORWARD AIR P vs. HF SINCLAIR P
Performance |
| Timeline |
| FORWARD AIR P |
| HF SINCLAIR P |
FORWARD AIR and HF SINCLAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FORWARD AIR and HF SINCLAIR
The main advantage of trading using opposite FORWARD AIR and HF SINCLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FORWARD AIR 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.| FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc | FORWARD AIR vs. Apple Inc |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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