Correlation Between HF SINCLAIR and Tiangong International
Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR and Tiangong International 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 HF SINCLAIR and Tiangong International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HF SINCLAIR P and Tiangong International, you can compare the effects of market volatilities on HF SINCLAIR and Tiangong International 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 HF SINCLAIR with a short position of Tiangong International. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and Tiangong International.
Diversification Opportunities for HF SINCLAIR and Tiangong International
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between HL80 and Tiangong is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P and Tiangong International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiangong International and HF SINCLAIR 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 HF SINCLAIR P are associated (or correlated) with Tiangong International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiangong International has no effect on the direction of HF SINCLAIR i.e., HF SINCLAIR and Tiangong International go up and down completely randomly.
Pair Corralation between HF SINCLAIR and Tiangong International
Assuming the 90 days trading horizon HF SINCLAIR P is expected to under-perform the Tiangong International. But the stock apears to be less risky and, when comparing its historical volatility, HF SINCLAIR P is 2.99 times less risky than Tiangong International. The stock trades about -0.18 of its potential returns per unit of risk. The Tiangong International is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Tiangong International on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Tiangong International or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
HF SINCLAIR P vs. Tiangong International
Performance |
| Timeline |
| HF SINCLAIR P |
| Tiangong International |
HF SINCLAIR and Tiangong International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF SINCLAIR and Tiangong International
The main advantage of trading using opposite HF SINCLAIR and Tiangong International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF SINCLAIR position performs unexpectedly, Tiangong International 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 Tiangong International will offset losses from the drop in Tiangong International's long position.| HF SINCLAIR vs. Superior Plus Corp | HF SINCLAIR vs. SIVERS SEMICONDUCTORS AB | HF SINCLAIR vs. Norsk Hydro ASA | HF SINCLAIR vs. Reliance Steel Aluminum |
| Tiangong International vs. Schweizer Electronic AG | Tiangong International vs. Richardson Electronics | Tiangong International vs. AOI Electronics Co | Tiangong International vs. Thai Beverage Public |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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