Correlation Between HF SINCLAIR and AWILCO LNG
Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR and AWILCO LNG 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 AWILCO LNG 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 AWILCO LNG NK, you can compare the effects of market volatilities on HF SINCLAIR and AWILCO LNG 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 AWILCO LNG. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and AWILCO LNG.
Diversification Opportunities for HF SINCLAIR and AWILCO LNG
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HL80 and AWILCO is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P and AWILCO LNG NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AWILCO LNG NK 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 AWILCO LNG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AWILCO LNG NK has no effect on the direction of HF SINCLAIR i.e., HF SINCLAIR and AWILCO LNG go up and down completely randomly.
Pair Corralation between HF SINCLAIR and AWILCO LNG
Assuming the 90 days trading horizon HF SINCLAIR P is expected to under-perform the AWILCO LNG. But the stock apears to be less risky and, when comparing its historical volatility, HF SINCLAIR P is 2.71 times less risky than AWILCO LNG. The stock trades about -0.05 of its potential returns per unit of risk. The AWILCO LNG NK is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 41.00 in AWILCO LNG NK on September 14, 2024 and sell it today you would lose (9.00) from holding AWILCO LNG NK or give up 21.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
HF SINCLAIR P vs. AWILCO LNG NK
Performance |
| Timeline |
| HF SINCLAIR P |
| AWILCO LNG NK |
HF SINCLAIR and AWILCO LNG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF SINCLAIR and AWILCO LNG
The main advantage of trading using opposite HF SINCLAIR and AWILCO LNG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF SINCLAIR position performs unexpectedly, AWILCO LNG 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 AWILCO LNG will offset losses from the drop in AWILCO LNG's long position.| HF SINCLAIR vs. INDOFOOD AGRI RES | HF SINCLAIR vs. Gamma Communications plc | HF SINCLAIR vs. SENECA FOODS A | HF SINCLAIR vs. ASSOC BR FOODS |
| AWILCO LNG vs. Superior Plus Corp | AWILCO LNG vs. SIVERS SEMICONDUCTORS AB | AWILCO LNG vs. CHINA HUARONG ENERHD 50 | AWILCO LNG vs. NORDIC HALIBUT AS |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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