Correlation Between Imperial Petroleum and HF Sinclair
Can any of the company-specific risk be diversified away by investing in both Imperial Petroleum 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 Imperial Petroleum and HF Sinclair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imperial Petroleum Preferred and HF Sinclair Corp, you can compare the effects of market volatilities on Imperial Petroleum 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 Imperial Petroleum with a short position of HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imperial Petroleum and HF Sinclair.
Diversification Opportunities for Imperial Petroleum and HF Sinclair
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Imperial and DINO is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Imperial Petroleum Preferred 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 Imperial Petroleum 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 Imperial Petroleum Preferred 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 Imperial Petroleum i.e., Imperial Petroleum and HF Sinclair go up and down completely randomly.
Pair Corralation between Imperial Petroleum and HF Sinclair
Assuming the 90 days horizon Imperial Petroleum Preferred is expected to generate 0.56 times more return on investment than HF Sinclair. However, Imperial Petroleum Preferred is 1.79 times less risky than HF Sinclair. It trades about 0.14 of its potential returns per unit of risk. HF Sinclair Corp is currently generating about -0.03 per unit of risk. If you would invest 1,772 in Imperial Petroleum Preferred on August 27, 2024 and sell it today you would earn a total of 758.00 from holding Imperial Petroleum Preferred or generate 42.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imperial Petroleum Preferred vs. HF Sinclair Corp
Performance |
| Timeline |
| Imperial Petroleum |
| HF Sinclair Corp |
Imperial Petroleum and HF Sinclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imperial Petroleum and HF Sinclair
The main advantage of trading using opposite Imperial Petroleum and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imperial Petroleum 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.| Imperial Petroleum vs. Imperial Petroleum | Imperial Petroleum vs. Dynagas LNG Partners | Imperial Petroleum vs. GasLog Partners LP | Imperial Petroleum vs. GasLog Partners LP |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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