Correlation Between HF SINCLAIR and DELTA AIR
Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR and DELTA AIR 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 DELTA AIR 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 DELTA AIR LINES, you can compare the effects of market volatilities on HF SINCLAIR and DELTA AIR 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 DELTA AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and DELTA AIR.
Diversification Opportunities for HF SINCLAIR and DELTA AIR
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HL80 and DELTA is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P and DELTA AIR LINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DELTA AIR LINES 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 DELTA AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DELTA AIR LINES has no effect on the direction of HF SINCLAIR i.e., HF SINCLAIR and DELTA AIR go up and down completely randomly.
Pair Corralation between HF SINCLAIR and DELTA AIR
Assuming the 90 days trading horizon HF SINCLAIR P is expected to under-perform the DELTA AIR. But the stock apears to be less risky and, when comparing its historical volatility, HF SINCLAIR P is 1.37 times less risky than DELTA AIR. The stock trades about -0.22 of its potential returns per unit of risk. The DELTA AIR LINES is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 5,997 in DELTA AIR LINES on September 13, 2024 and sell it today you would earn a total of 33.00 from holding DELTA AIR LINES or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF SINCLAIR P vs. DELTA AIR LINES
Performance |
| Timeline |
| HF SINCLAIR P |
| DELTA AIR LINES |
HF SINCLAIR and DELTA AIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF SINCLAIR and DELTA AIR
The main advantage of trading using opposite HF SINCLAIR and DELTA AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF SINCLAIR position performs unexpectedly, DELTA AIR 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 DELTA AIR will offset losses from the drop in DELTA AIR'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 |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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