Correlation Between HF SINCLAIR and EDISON INTL
Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR and EDISON INTL 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 EDISON INTL 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 EDISON INTL, you can compare the effects of market volatilities on HF SINCLAIR and EDISON INTL 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 EDISON INTL. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and EDISON INTL.
Diversification Opportunities for HF SINCLAIR and EDISON INTL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HL80 and EDISON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P and EDISON INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDISON INTL 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 EDISON INTL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDISON INTL has no effect on the direction of HF SINCLAIR i.e., HF SINCLAIR and EDISON INTL go up and down completely randomly.
Pair Corralation between HF SINCLAIR and EDISON INTL
Assuming the 90 days trading horizon HF SINCLAIR P is expected to under-perform the EDISON INTL. In addition to that, HF SINCLAIR is 2.21 times more volatile than EDISON INTL. It trades about -0.01 of its total potential returns per unit of risk. EDISON INTL is currently generating about 0.08 per unit of volatility. If you would invest 5,585 in EDISON INTL on September 14, 2024 and sell it today you would earn a total of 2,211 from holding EDISON INTL or generate 39.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
HF SINCLAIR P vs. EDISON INTL
Performance |
| Timeline |
| HF SINCLAIR P |
| EDISON INTL |
HF SINCLAIR and EDISON INTL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF SINCLAIR and EDISON INTL
The main advantage of trading using opposite HF SINCLAIR and EDISON INTL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF SINCLAIR position performs unexpectedly, EDISON INTL 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 EDISON INTL will offset losses from the drop in EDISON INTL'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 |
| EDISON INTL vs. Chunghwa Telecom Co | EDISON INTL vs. HF SINCLAIR P | EDISON INTL vs. FORWARD AIR P | EDISON INTL vs. SK TELECOM TDADR |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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