Correlation Between MMA Offshore and HF Sinclair
Can any of the company-specific risk be diversified away by investing in both MMA Offshore 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 MMA Offshore and HF Sinclair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MMA Offshore Limited and HF Sinclair Corp, you can compare the effects of market volatilities on MMA Offshore 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 MMA Offshore with a short position of HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of MMA Offshore and HF Sinclair.
Diversification Opportunities for MMA Offshore and HF Sinclair
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MMA and DINO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MMA Offshore Limited 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 MMA Offshore 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 MMA Offshore Limited 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 MMA Offshore i.e., MMA Offshore and HF Sinclair go up and down completely randomly.
Pair Corralation between MMA Offshore and HF Sinclair
Assuming the 90 days horizon MMA Offshore Limited is expected to generate 20.51 times more return on investment than HF Sinclair. However, MMA Offshore is 20.51 times more volatile than HF Sinclair Corp. It trades about 0.05 of its potential returns per unit of risk. HF Sinclair Corp is currently generating about 0.0 per unit of risk. If you would invest 16.00 in MMA Offshore Limited on August 31, 2024 and sell it today you would earn a total of 134.00 from holding MMA Offshore Limited or generate 837.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 81.38% |
| Values | Daily Returns |
MMA Offshore Limited vs. HF Sinclair Corp
Performance |
| Timeline |
| MMA Offshore Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| HF Sinclair Corp |
MMA Offshore and HF Sinclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MMA Offshore and HF Sinclair
The main advantage of trading using opposite MMA Offshore and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MMA Offshore 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.| MMA Offshore vs. Northstar Clean Technologies | MMA Offshore vs. Hooker Furniture | MMA Offshore vs. Smith Douglas Homes | MMA Offshore vs. Cebu Air ADR |
| HF Sinclair vs. Delek Logistics Partners | HF Sinclair vs. PBF Energy | HF Sinclair vs. Par Pacific Holdings | HF Sinclair vs. Delek Energy |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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