Correlation Between HF SINCLAIR and CSX
Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR and CSX 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 CSX 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 CSX Corporation, you can compare the effects of market volatilities on HF SINCLAIR and CSX 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 CSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and CSX.
Diversification Opportunities for HF SINCLAIR and CSX
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between HL80 and CSX is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P and CSX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSX Corporation 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 CSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSX Corporation has no effect on the direction of HF SINCLAIR i.e., HF SINCLAIR and CSX go up and down completely randomly.
Pair Corralation between HF SINCLAIR and CSX
Assuming the 90 days trading horizon HF SINCLAIR P is expected to under-perform the CSX. But the stock apears to be less risky and, when comparing its historical volatility, HF SINCLAIR P is 1.17 times less risky than CSX. The stock trades about -0.37 of its potential returns per unit of risk. The CSX Corporation is currently generating about -0.23 of returns per unit of risk over similar time horizon. If you would invest 3,430 in CSX Corporation on September 15, 2024 and sell it today you would lose (250.00) from holding CSX Corporation or give up 7.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
HF SINCLAIR P vs. CSX Corp.
Performance |
Timeline |
HF SINCLAIR P |
CSX Corporation |
HF SINCLAIR and CSX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HF SINCLAIR and CSX
The main advantage of trading using opposite HF SINCLAIR and CSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF SINCLAIR position performs unexpectedly, CSX 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 CSX will offset losses from the drop in CSX's long position.HF SINCLAIR vs. Superior Plus Corp | HF SINCLAIR vs. SIVERS SEMICONDUCTORS AB | HF SINCLAIR vs. Norsk Hydro ASA | HF SINCLAIR vs. Reliance Steel Aluminum |
CSX vs. GRIFFIN MINING LTD | CSX vs. Taiwan Semiconductor Manufacturing | CSX vs. GREENX METALS LTD | CSX vs. Elmos Semiconductor SE |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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