Correlation Between Idemitsu Kosan and HF Sinclair
Can any of the company-specific risk be diversified away by investing in both Idemitsu Kosan 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 Idemitsu Kosan and HF Sinclair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Idemitsu Kosan Co and HF Sinclair Corp, you can compare the effects of market volatilities on Idemitsu Kosan 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 Idemitsu Kosan with a short position of HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Idemitsu Kosan and HF Sinclair.
Diversification Opportunities for Idemitsu Kosan and HF Sinclair
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Idemitsu and DINO is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Idemitsu Kosan Co and HF Sinclair Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF Sinclair Corp and Idemitsu Kosan 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 Idemitsu Kosan Co 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 Corp has no effect on the direction of Idemitsu Kosan i.e., Idemitsu Kosan and HF Sinclair go up and down completely randomly.
Pair Corralation between Idemitsu Kosan and HF Sinclair
Assuming the 90 days horizon Idemitsu Kosan Co is expected to generate 1.57 times more return on investment than HF Sinclair. However, Idemitsu Kosan is 1.57 times more volatile than HF Sinclair Corp. It trades about 0.04 of its potential returns per unit of risk. HF Sinclair Corp is currently generating about -0.08 per unit of risk. If you would invest 1,197 in Idemitsu Kosan Co on November 3, 2024 and sell it today you would earn a total of 126.00 from holding Idemitsu Kosan Co or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Idemitsu Kosan Co vs. HF Sinclair Corp
Performance |
| Timeline |
| Idemitsu Kosan |
| HF Sinclair Corp |
Idemitsu Kosan and HF Sinclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Idemitsu Kosan and HF Sinclair
The main advantage of trading using opposite Idemitsu Kosan and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Idemitsu Kosan 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.| Idemitsu Kosan vs. Eneos Holdings ADR | Idemitsu Kosan vs. HF Sinclair Corp | Idemitsu Kosan vs. Idemitsu Kosan CoLtd | Idemitsu Kosan vs. PBF Energy |
| HF Sinclair vs. Delek Energy | HF Sinclair vs. CVR Energy | HF Sinclair vs. Valero Energy | HF Sinclair vs. Marathon Petroleum Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |