Correlation Between HF SINCLAIR and Mitsubishi Electric
Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR and Mitsubishi Electric 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 Mitsubishi Electric 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 Mitsubishi Electric, you can compare the effects of market volatilities on HF SINCLAIR and Mitsubishi Electric 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 Mitsubishi Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and Mitsubishi Electric.
Diversification Opportunities for HF SINCLAIR and Mitsubishi Electric
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HL80 and Mitsubishi is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P and Mitsubishi Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitsubishi Electric 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 Mitsubishi Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitsubishi Electric has no effect on the direction of HF SINCLAIR i.e., HF SINCLAIR and Mitsubishi Electric go up and down completely randomly.
Pair Corralation between HF SINCLAIR and Mitsubishi Electric
Assuming the 90 days trading horizon HF SINCLAIR P is expected to generate 0.6 times more return on investment than Mitsubishi Electric. However, HF SINCLAIR P is 1.66 times less risky than Mitsubishi Electric. It trades about 0.36 of its potential returns per unit of risk. Mitsubishi Electric is currently generating about 0.11 per unit of risk. If you would invest 3,456 in HF SINCLAIR P on September 1, 2024 and sell it today you would earn a total of 384.00 from holding HF SINCLAIR P or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
HF SINCLAIR P vs. Mitsubishi Electric
Performance |
| Timeline |
| HF SINCLAIR P |
| Mitsubishi Electric |
HF SINCLAIR and Mitsubishi Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF SINCLAIR and Mitsubishi Electric
The main advantage of trading using opposite HF SINCLAIR and Mitsubishi Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF SINCLAIR position performs unexpectedly, Mitsubishi Electric 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 Mitsubishi Electric will offset losses from the drop in Mitsubishi Electric's long position.| HF SINCLAIR vs. Superior Plus Corp | HF SINCLAIR vs. NMI Holdings | HF SINCLAIR vs. Origin Agritech | HF SINCLAIR vs. SIVERS SEMICONDUCTORS AB |
| Mitsubishi Electric vs. Verizon Communications | Mitsubishi Electric vs. Highlight Communications AG | Mitsubishi Electric vs. WillScot Mobile Mini | Mitsubishi Electric vs. HF SINCLAIR P |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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