Correlation Between HF SINCLAIR and State Street
Can any of the company-specific risk be diversified away by investing in both HF SINCLAIR and State Street 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 State Street 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 State Street, you can compare the effects of market volatilities on HF SINCLAIR and State Street 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 State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF SINCLAIR and State Street.
Diversification Opportunities for HF SINCLAIR and State Street
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HL80 and State is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding HF SINCLAIR P and State Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street 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 State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street has no effect on the direction of HF SINCLAIR i.e., HF SINCLAIR and State Street go up and down completely randomly.
Pair Corralation between HF SINCLAIR and State Street
Assuming the 90 days trading horizon HF SINCLAIR P is expected to generate 0.93 times more return on investment than State Street. However, HF SINCLAIR P is 1.07 times less risky than State Street. It trades about 0.35 of its potential returns per unit of risk. State Street is currently generating about 0.27 per unit of risk. If you would invest 3,515 in HF SINCLAIR P on September 5, 2024 and sell it today you would earn a total of 385.00 from holding HF SINCLAIR P or generate 10.95% 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. State Street
Performance |
| Timeline |
| HF SINCLAIR P |
| State Street |
HF SINCLAIR and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF SINCLAIR and State Street
The main advantage of trading using opposite HF SINCLAIR and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF SINCLAIR position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| HF SINCLAIR vs. Marathon Petroleum Corp | HF SINCLAIR vs. Neste Oyj | HF SINCLAIR vs. ENEOS Holdings | HF SINCLAIR vs. PTT OILRETBUS FOR BA10 |
| State Street vs. Blackstone Group | State Street vs. BlackRock | State Street vs. The Bank of | State Street vs. Ameriprise Financial |
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..
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |