Correlation Between HF SINCLAIR and Superior Plus
Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR and Superior Plus 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 Superior Plus 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 Superior Plus Corp, you can compare the effects of market volatilities on HF SINCLAIR and Superior Plus 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 Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and Superior Plus.
Diversification Opportunities for HF SINCLAIR and Superior Plus
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HL80 and Superior is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp 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 Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of HF SINCLAIR i.e., HF SINCLAIR and Superior Plus go up and down completely randomly.
Pair Corralation between HF SINCLAIR and Superior Plus
Assuming the 90 days trading horizon HF SINCLAIR P is expected to generate 0.39 times more return on investment than Superior Plus. However, HF SINCLAIR P is 2.55 times less risky than Superior Plus. It trades about 0.11 of its potential returns per unit of risk. Superior Plus Corp is currently generating about 0.01 per unit of risk. If you would invest 3,673 in HF SINCLAIR P on August 31, 2024 and sell it today you would earn a total of 167.00 from holding HF SINCLAIR P or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF SINCLAIR P vs. Superior Plus Corp
Performance |
| Timeline |
| HF SINCLAIR P |
| Superior Plus Corp |
HF SINCLAIR and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF SINCLAIR and Superior Plus
The main advantage of trading using opposite HF SINCLAIR and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF SINCLAIR position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| HF SINCLAIR vs. Superior Plus Corp | HF SINCLAIR vs. NMI Holdings | HF SINCLAIR vs. Origin Agritech | HF SINCLAIR vs. SIVERS SEMICONDUCTORS AB |
| Superior Plus vs. BROADSTNET LEADL 00025 | Superior Plus vs. Mitsubishi Materials | Superior Plus vs. Martin Marietta Materials | Superior Plus vs. Summit Materials |
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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