Correlation Between HF SINCLAIR and MEDIPAL HOLDINGS
Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR and MEDIPAL HOLDINGS 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 MEDIPAL HOLDINGS 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 MEDIPAL HOLDINGS P, you can compare the effects of market volatilities on HF SINCLAIR and MEDIPAL HOLDINGS 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 MEDIPAL HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and MEDIPAL HOLDINGS.
Diversification Opportunities for HF SINCLAIR and MEDIPAL HOLDINGS
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HL80 and MEDIPAL is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P and MEDIPAL HOLDINGS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIPAL HOLDINGS P 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 MEDIPAL HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDIPAL HOLDINGS P has no effect on the direction of HF SINCLAIR i.e., HF SINCLAIR and MEDIPAL HOLDINGS go up and down completely randomly.
Pair Corralation between HF SINCLAIR and MEDIPAL HOLDINGS
Assuming the 90 days trading horizon HF SINCLAIR P is expected to under-perform the MEDIPAL HOLDINGS. In addition to that, HF SINCLAIR is 1.22 times more volatile than MEDIPAL HOLDINGS P. It trades about -0.03 of its total potential returns per unit of risk. MEDIPAL HOLDINGS P is currently generating about 0.02 per unit of volatility. If you would invest 1,480 in MEDIPAL HOLDINGS P on September 4, 2024 and sell it today you would earn a total of 60.00 from holding MEDIPAL HOLDINGS P or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF SINCLAIR P vs. MEDIPAL HOLDINGS P
Performance |
| Timeline |
| HF SINCLAIR P |
| MEDIPAL HOLDINGS P |
HF SINCLAIR and MEDIPAL HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF SINCLAIR and MEDIPAL HOLDINGS
The main advantage of trading using opposite HF SINCLAIR and MEDIPAL HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF SINCLAIR position performs unexpectedly, MEDIPAL HOLDINGS 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 MEDIPAL HOLDINGS will offset losses from the drop in MEDIPAL HOLDINGS's long position.| HF SINCLAIR vs. MCEWEN MINING INC | HF SINCLAIR vs. Wayside Technology Group | HF SINCLAIR vs. GALENA MINING LTD | HF SINCLAIR vs. Vishay Intertechnology |
| MEDIPAL HOLDINGS vs. EIDESVIK OFFSHORE NK | MEDIPAL HOLDINGS vs. Air New Zealand | MEDIPAL HOLDINGS vs. ALTAIR RES INC | MEDIPAL HOLDINGS vs. HF SINCLAIR P |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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