Correlation Between HF SINCLAIR and SYSTEMAIR
Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR and SYSTEMAIR 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 SYSTEMAIR 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 SYSTEMAIR AB, you can compare the effects of market volatilities on HF SINCLAIR and SYSTEMAIR 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 SYSTEMAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and SYSTEMAIR.
Diversification Opportunities for HF SINCLAIR and SYSTEMAIR
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between HL80 and SYSTEMAIR is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P and SYSTEMAIR AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYSTEMAIR AB 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 SYSTEMAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYSTEMAIR AB has no effect on the direction of HF SINCLAIR i.e., HF SINCLAIR and SYSTEMAIR go up and down completely randomly.
Pair Corralation between HF SINCLAIR and SYSTEMAIR
Assuming the 90 days trading horizon HF SINCLAIR P is expected to under-perform the SYSTEMAIR. But the stock apears to be less risky and, when comparing its historical volatility, HF SINCLAIR P is 1.39 times less risky than SYSTEMAIR. The stock trades about -0.02 of its potential returns per unit of risk. The SYSTEMAIR AB is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 501.00 in SYSTEMAIR AB on August 29, 2024 and sell it today you would earn a total of 292.00 from holding SYSTEMAIR AB or generate 58.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF SINCLAIR P vs. SYSTEMAIR AB
Performance |
| Timeline |
| HF SINCLAIR P |
| SYSTEMAIR AB |
HF SINCLAIR and SYSTEMAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF SINCLAIR and SYSTEMAIR
The main advantage of trading using opposite HF SINCLAIR and SYSTEMAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF SINCLAIR position performs unexpectedly, SYSTEMAIR 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 SYSTEMAIR will offset losses from the drop in SYSTEMAIR'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 |
| SYSTEMAIR vs. AUST AGRICULTURAL | SYSTEMAIR vs. AGRICULTBK HADR25 YC | SYSTEMAIR vs. GEAR4MUSIC LS 10 | SYSTEMAIR vs. TITAN MACHINERY |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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