Correlation Between Hudson Technologies and HF Sinclair
Can any of the company-specific risk be diversified away by investing in both Hudson Technologies 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 Hudson Technologies and HF Sinclair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudson Technologies and HF Sinclair Corp, you can compare the effects of market volatilities on Hudson Technologies 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 Hudson Technologies with a short position of HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Technologies and HF Sinclair.
Diversification Opportunities for Hudson Technologies and HF Sinclair
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hudson and DINO is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Technologies 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 Hudson Technologies 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 Hudson Technologies 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 Hudson Technologies i.e., Hudson Technologies and HF Sinclair go up and down completely randomly.
Pair Corralation between Hudson Technologies and HF Sinclair
Given the investment horizon of 90 days Hudson Technologies is expected to under-perform the HF Sinclair. In addition to that, Hudson Technologies is 1.5 times more volatile than HF Sinclair Corp. It trades about -0.08 of its total potential returns per unit of risk. HF Sinclair Corp is currently generating about -0.04 per unit of volatility. If you would invest 5,318 in HF Sinclair Corp on September 1, 2024 and sell it today you would lose (1,225) from holding HF Sinclair Corp or give up 23.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hudson Technologies vs. HF Sinclair Corp
Performance |
| Timeline |
| Hudson Technologies |
| HF Sinclair Corp |
Hudson Technologies and HF Sinclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hudson Technologies and HF Sinclair
The main advantage of trading using opposite Hudson Technologies and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Technologies 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.| Hudson Technologies vs. Sensient Technologies | Hudson Technologies vs. Innospec | Hudson Technologies vs. H B Fuller | Hudson Technologies vs. Quaker Chemical |
| HF Sinclair vs. Delek Energy | HF Sinclair vs. Crossamerica Partners LP | HF Sinclair vs. Par Pacific Holdings | HF Sinclair vs. Valvoline |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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