Correlation Between HF SINCLAIR and Solstad Offshore
Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR and Solstad Offshore 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 Solstad Offshore 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 Solstad Offshore ASA, you can compare the effects of market volatilities on HF SINCLAIR and Solstad Offshore 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 Solstad Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and Solstad Offshore.
Diversification Opportunities for HF SINCLAIR and Solstad Offshore
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HL80 and Solstad is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P and Solstad Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstad Offshore ASA 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 Solstad Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solstad Offshore ASA has no effect on the direction of HF SINCLAIR i.e., HF SINCLAIR and Solstad Offshore go up and down completely randomly.
Pair Corralation between HF SINCLAIR and Solstad Offshore
Assuming the 90 days trading horizon HF SINCLAIR P is expected to generate 1.25 times more return on investment than Solstad Offshore. However, HF SINCLAIR is 1.25 times more volatile than Solstad Offshore ASA. It trades about 0.23 of its potential returns per unit of risk. Solstad Offshore ASA is currently generating about 0.0 per unit of risk. If you would invest 3,260 in HF SINCLAIR P on November 8, 2024 and sell it today you would earn a total of 340.00 from holding HF SINCLAIR P or generate 10.43% 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. Solstad Offshore ASA
Performance |
| Timeline |
| HF SINCLAIR P |
| Solstad Offshore ASA |
HF SINCLAIR and Solstad Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF SINCLAIR and Solstad Offshore
The main advantage of trading using opposite HF SINCLAIR and Solstad Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF SINCLAIR position performs unexpectedly, Solstad Offshore 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 Solstad Offshore will offset losses from the drop in Solstad Offshore's long position.| HF SINCLAIR vs. ADRIATIC METALS LS 013355 | HF SINCLAIR vs. Guangdong Investment Limited | HF SINCLAIR vs. Perseus Mining Limited | HF SINCLAIR vs. ecotel communication ag |
| Solstad Offshore vs. BE Semiconductor Industries | Solstad Offshore vs. ELMOS SEMICONDUCTOR | Solstad Offshore vs. Sumitomo Mitsui Construction | Solstad Offshore vs. North American Construction |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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