Correlation Between HF SINCLAIR and EMBARK EDUCATION
Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR and EMBARK EDUCATION 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 EMBARK EDUCATION 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 EMBARK EDUCATION LTD, you can compare the effects of market volatilities on HF SINCLAIR and EMBARK EDUCATION 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 EMBARK EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and EMBARK EDUCATION.
Diversification Opportunities for HF SINCLAIR and EMBARK EDUCATION
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between HL80 and EMBARK is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P and EMBARK EDUCATION LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMBARK EDUCATION LTD 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 EMBARK EDUCATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMBARK EDUCATION LTD has no effect on the direction of HF SINCLAIR i.e., HF SINCLAIR and EMBARK EDUCATION go up and down completely randomly.
Pair Corralation between HF SINCLAIR and EMBARK EDUCATION
Assuming the 90 days trading horizon HF SINCLAIR P is expected to generate 1.88 times more return on investment than EMBARK EDUCATION. However, HF SINCLAIR is 1.88 times more volatile than EMBARK EDUCATION LTD. It trades about 0.34 of its potential returns per unit of risk. EMBARK EDUCATION LTD is currently generating about 0.22 per unit of risk. If you would invest 3,476 in HF SINCLAIR P on September 2, 2024 and sell it today you would earn a total of 364.00 from holding HF SINCLAIR P or generate 10.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
HF SINCLAIR P vs. EMBARK EDUCATION LTD
Performance |
| Timeline |
| HF SINCLAIR P |
| EMBARK EDUCATION LTD |
HF SINCLAIR and EMBARK EDUCATION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF SINCLAIR and EMBARK EDUCATION
The main advantage of trading using opposite HF SINCLAIR and EMBARK EDUCATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF SINCLAIR position performs unexpectedly, EMBARK EDUCATION 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 EMBARK EDUCATION will offset losses from the drop in EMBARK EDUCATION's long position.| HF SINCLAIR vs. Bumrungrad Hospital Public | HF SINCLAIR vs. Ramsay Health Care | HF SINCLAIR vs. National Retail Properties | HF SINCLAIR vs. Canon Marketing Japan |
| EMBARK EDUCATION vs. Laureate Education | EMBARK EDUCATION vs. Superior Plus Corp | EMBARK EDUCATION vs. NMI Holdings | EMBARK EDUCATION vs. Origin Agritech |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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