Correlation Between MACOM Technology and HF Sinclair
Can any of the company-specific risk be diversified away by investing in both MACOM Technology 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 MACOM Technology and HF Sinclair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MACOM Technology Solutions and HF Sinclair Corp, you can compare the effects of market volatilities on MACOM Technology 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 MACOM Technology with a short position of HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of MACOM Technology and HF Sinclair.
Diversification Opportunities for MACOM Technology and HF Sinclair
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MACOM and DINO is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding MACOM Technology Solutions 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 MACOM Technology 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 MACOM Technology Solutions 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 MACOM Technology i.e., MACOM Technology and HF Sinclair go up and down completely randomly.
Pair Corralation between MACOM Technology and HF Sinclair
Given the investment horizon of 90 days MACOM Technology Solutions is expected to generate 1.35 times more return on investment than HF Sinclair. However, MACOM Technology is 1.35 times more volatile than HF Sinclair Corp. It trades about 0.18 of its potential returns per unit of risk. HF Sinclair Corp is currently generating about -0.09 per unit of risk. If you would invest 9,797 in MACOM Technology Solutions on September 2, 2024 and sell it today you would earn a total of 3,485 from holding MACOM Technology Solutions or generate 35.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MACOM Technology Solutions vs. HF Sinclair Corp
Performance |
| Timeline |
| MACOM Technology Sol |
| HF Sinclair Corp |
MACOM Technology and HF Sinclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MACOM Technology and HF Sinclair
The main advantage of trading using opposite MACOM Technology and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MACOM Technology 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.| MACOM Technology vs. NXP Semiconductors NV | MACOM Technology vs. GSI Technology | MACOM Technology vs. MaxLinear | MACOM Technology vs. Texas Instruments Incorporated |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |