Correlation Between HF SINCLAIR and Toho
Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR and Toho 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 Toho 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 Toho Co, you can compare the effects of market volatilities on HF SINCLAIR and Toho 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 Toho. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and Toho.
Diversification Opportunities for HF SINCLAIR and Toho
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between HL80 and Toho is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P and Toho Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toho 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 Toho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toho has no effect on the direction of HF SINCLAIR i.e., HF SINCLAIR and Toho go up and down completely randomly.
Pair Corralation between HF SINCLAIR and Toho
Assuming the 90 days trading horizon HF SINCLAIR P is expected to under-perform the Toho. But the stock apears to be less risky and, when comparing its historical volatility, HF SINCLAIR P is 2.98 times less risky than Toho. The stock trades about 0.0 of its potential returns per unit of risk. The Toho Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,502 in Toho Co on September 12, 2024 and sell it today you would earn a total of 2,538 from holding Toho Co or generate 168.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF SINCLAIR P vs. Toho Co
Performance |
| Timeline |
| HF SINCLAIR P |
| Toho |
HF SINCLAIR and Toho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF SINCLAIR and Toho
The main advantage of trading using opposite HF SINCLAIR and Toho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF SINCLAIR position performs unexpectedly, Toho 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 Toho will offset losses from the drop in Toho'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 |
| Toho vs. DELTA AIR LINES | Toho vs. Universal Display | Toho vs. HF SINCLAIR P | Toho vs. PLAYTIKA HOLDING DL 01 |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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