Correlation Between Sphere Entertainment and HF Sinclair
Can any of the company-specific risk be diversified away by investing in both Sphere Entertainment 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 Sphere Entertainment and HF Sinclair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sphere Entertainment Co and HF Sinclair Corp, you can compare the effects of market volatilities on Sphere Entertainment 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 Sphere Entertainment with a short position of HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sphere Entertainment and HF Sinclair.
Diversification Opportunities for Sphere Entertainment and HF Sinclair
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sphere and DINO is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sphere Entertainment 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 Sphere Entertainment 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 Sphere Entertainment 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 Sphere Entertainment i.e., Sphere Entertainment and HF Sinclair go up and down completely randomly.
Pair Corralation between Sphere Entertainment and HF Sinclair
Given the investment horizon of 90 days Sphere Entertainment Co is expected to under-perform the HF Sinclair. In addition to that, Sphere Entertainment is 1.02 times more volatile than HF Sinclair Corp. It trades about -0.16 of its total potential returns per unit of risk. HF Sinclair Corp is currently generating about -0.02 per unit of volatility. If you would invest 4,237 in HF Sinclair Corp on August 28, 2024 and sell it today you would lose (58.00) from holding HF Sinclair Corp or give up 1.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sphere Entertainment Co vs. HF Sinclair Corp
Performance |
| Timeline |
| Sphere Entertainment |
| HF Sinclair Corp |
Sphere Entertainment and HF Sinclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sphere Entertainment and HF Sinclair
The main advantage of trading using opposite Sphere Entertainment and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sphere Entertainment 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.| Sphere Entertainment vs. ADTRAN Inc | Sphere Entertainment vs. Belden Inc | Sphere Entertainment vs. ADC Therapeutics SA | Sphere Entertainment vs. Comtech Telecommunications Corp |
| HF Sinclair vs. Crossamerica Partners LP | HF Sinclair vs. Valvoline | HF Sinclair vs. Star Gas Partners | HF Sinclair vs. Delek Logistics Partners |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |