Correlation Between Icahn Enterprises and HF Sinclair
Can any of the company-specific risk be diversified away by investing in both Icahn Enterprises 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 Icahn Enterprises and HF Sinclair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icahn Enterprises LP and HF Sinclair Corp, you can compare the effects of market volatilities on Icahn Enterprises 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 Icahn Enterprises with a short position of HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icahn Enterprises and HF Sinclair.
Diversification Opportunities for Icahn Enterprises and HF Sinclair
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Icahn and DINO is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Icahn Enterprises LP 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 Icahn Enterprises 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 Icahn Enterprises LP 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 Icahn Enterprises i.e., Icahn Enterprises and HF Sinclair go up and down completely randomly.
Pair Corralation between Icahn Enterprises and HF Sinclair
Considering the 90-day investment horizon Icahn Enterprises LP is expected to under-perform the HF Sinclair. In addition to that, Icahn Enterprises is 2.14 times more volatile than HF Sinclair Corp. It trades about -0.24 of its total potential returns per unit of risk. HF Sinclair Corp is currently generating about 0.0 per unit of volatility. If you would invest 4,237 in HF Sinclair Corp on August 27, 2024 and sell it today you would lose (14.00) from holding HF Sinclair Corp or give up 0.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icahn Enterprises LP vs. HF Sinclair Corp
Performance |
| Timeline |
| Icahn Enterprises |
| HF Sinclair Corp |
Icahn Enterprises and HF Sinclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icahn Enterprises and HF Sinclair
The main advantage of trading using opposite Icahn Enterprises and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icahn Enterprises 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.| Icahn Enterprises vs. Delek Energy | Icahn Enterprises vs. PBF Energy | Icahn Enterprises vs. HF Sinclair Corp | Icahn Enterprises vs. Delek Logistics Partners |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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