Correlation Between HF SINCLAIR and GRUPO CARSO-A1
Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR and GRUPO CARSO-A1 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 GRUPO CARSO-A1 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 GRUPO CARSO A1, you can compare the effects of market volatilities on HF SINCLAIR and GRUPO CARSO-A1 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 GRUPO CARSO-A1. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and GRUPO CARSO-A1.
Diversification Opportunities for HF SINCLAIR and GRUPO CARSO-A1
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HL80 and GRUPO is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P and GRUPO CARSO A1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRUPO CARSO A1 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 GRUPO CARSO-A1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRUPO CARSO A1 has no effect on the direction of HF SINCLAIR i.e., HF SINCLAIR and GRUPO CARSO-A1 go up and down completely randomly.
Pair Corralation between HF SINCLAIR and GRUPO CARSO-A1
Assuming the 90 days trading horizon HF SINCLAIR P is expected to under-perform the GRUPO CARSO-A1. But the stock apears to be less risky and, when comparing its historical volatility, HF SINCLAIR P is 1.88 times less risky than GRUPO CARSO-A1. The stock trades about -0.08 of its potential returns per unit of risk. The GRUPO CARSO A1 is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 524.00 in GRUPO CARSO A1 on September 1, 2024 and sell it today you would earn a total of 41.00 from holding GRUPO CARSO A1 or generate 7.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF SINCLAIR P vs. GRUPO CARSO A1
Performance |
| Timeline |
| HF SINCLAIR P |
| GRUPO CARSO A1 |
HF SINCLAIR and GRUPO CARSO-A1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF SINCLAIR and GRUPO CARSO-A1
The main advantage of trading using opposite HF SINCLAIR and GRUPO CARSO-A1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF SINCLAIR position performs unexpectedly, GRUPO CARSO-A1 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 GRUPO CARSO-A1 will offset losses from the drop in GRUPO CARSO-A1's long position.| HF SINCLAIR vs. Superior Plus Corp | HF SINCLAIR vs. NMI Holdings | HF SINCLAIR vs. Origin Agritech | HF SINCLAIR vs. SIVERS SEMICONDUCTORS AB |
| GRUPO CARSO-A1 vs. CarsalesCom | GRUPO CARSO-A1 vs. Elmos Semiconductor SE | GRUPO CARSO-A1 vs. BE Semiconductor Industries | GRUPO CARSO-A1 vs. INTER CARS SA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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