Correlation Between HF SINCLAIR and DSV Panalpina
Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR and DSV Panalpina 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 DSV Panalpina 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 DSV Panalpina AS, you can compare the effects of market volatilities on HF SINCLAIR and DSV Panalpina 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 DSV Panalpina. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and DSV Panalpina.
Diversification Opportunities for HF SINCLAIR and DSV Panalpina
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HL80 and DSV is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P and DSV Panalpina AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DSV Panalpina AS 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 DSV Panalpina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DSV Panalpina AS has no effect on the direction of HF SINCLAIR i.e., HF SINCLAIR and DSV Panalpina go up and down completely randomly.
Pair Corralation between HF SINCLAIR and DSV Panalpina
Assuming the 90 days trading horizon HF SINCLAIR P is expected to under-perform the DSV Panalpina. But the stock apears to be less risky and, when comparing its historical volatility, HF SINCLAIR P is 1.18 times less risky than DSV Panalpina. The stock trades about -0.22 of its potential returns per unit of risk. The DSV Panalpina AS is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 19,830 in DSV Panalpina AS on September 13, 2024 and sell it today you would earn a total of 620.00 from holding DSV Panalpina AS or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
HF SINCLAIR P vs. DSV Panalpina AS
Performance |
| Timeline |
| HF SINCLAIR P |
| DSV Panalpina AS |
HF SINCLAIR and DSV Panalpina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF SINCLAIR and DSV Panalpina
The main advantage of trading using opposite HF SINCLAIR and DSV Panalpina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF SINCLAIR position performs unexpectedly, DSV Panalpina 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 DSV Panalpina will offset losses from the drop in DSV Panalpina'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 |
| DSV Panalpina vs. BlueScope Steel Limited | DSV Panalpina vs. CECO ENVIRONMENTAL | DSV Panalpina vs. PLAYTIKA HOLDING DL 01 | DSV Panalpina vs. Khiron Life Sciences |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |