Correlation Between Hang Seng and HF SINCLAIR
Can any of the company-specific risk be diversified away by investing in both Hang Seng and HF SINCLAIR 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 Hang Seng and HF SINCLAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hang Seng Bank and HF SINCLAIR P, you can compare the effects of market volatilities on Hang Seng and HF SINCLAIR 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 Hang Seng with a short position of HF SINCLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hang Seng and HF SINCLAIR.
Diversification Opportunities for Hang Seng and HF SINCLAIR
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hang and HL80 is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hang Seng Bank and HF SINCLAIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF SINCLAIR P and Hang Seng 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 Hang Seng Bank are associated (or correlated) with HF SINCLAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF SINCLAIR P has no effect on the direction of Hang Seng i.e., Hang Seng and HF SINCLAIR go up and down completely randomly.
Pair Corralation between Hang Seng and HF SINCLAIR
Assuming the 90 days horizon Hang Seng Bank is expected to generate 1.22 times more return on investment than HF SINCLAIR. However, Hang Seng is 1.22 times more volatile than HF SINCLAIR P. It trades about 0.09 of its potential returns per unit of risk. HF SINCLAIR P is currently generating about -0.01 per unit of risk. If you would invest 526.00 in Hang Seng Bank on December 4, 2024 and sell it today you would earn a total of 814.00 from holding Hang Seng Bank or generate 154.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hang Seng Bank vs. HF SINCLAIR P
Performance |
| Timeline |
| Hang Seng Bank |
| HF SINCLAIR P |
Hang Seng and HF SINCLAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hang Seng and HF SINCLAIR
The main advantage of trading using opposite Hang Seng and HF SINCLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hang Seng position performs unexpectedly, HF SINCLAIR 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 HF SINCLAIR will offset losses from the drop in HF SINCLAIR's long position.| Hang Seng vs. MOVIE GAMES SA | Hang Seng vs. Thai Beverage Public | Hang Seng vs. ScanSource | Hang Seng vs. betterU Education Corp |
| HF SINCLAIR vs. GREENX METALS LTD | HF SINCLAIR vs. FANDIFI TECHNOLOGY P | HF SINCLAIR vs. Stag Industrial | HF SINCLAIR vs. Hastings Technology Metals |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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