Correlation Between ULTRA CLEAN and HF SINCLAIR
Can any of the company-specific risk be diversified away by investing in both ULTRA CLEAN 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 ULTRA CLEAN and HF SINCLAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ULTRA CLEAN HLDGS and HF SINCLAIR P, you can compare the effects of market volatilities on ULTRA CLEAN 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 ULTRA CLEAN with a short position of HF SINCLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of ULTRA CLEAN and HF SINCLAIR.
Diversification Opportunities for ULTRA CLEAN and HF SINCLAIR
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ULTRA and HL80 is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding ULTRA CLEAN HLDGS and HF SINCLAIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF SINCLAIR P and ULTRA CLEAN 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 ULTRA CLEAN HLDGS 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 P has no effect on the direction of ULTRA CLEAN i.e., ULTRA CLEAN and HF SINCLAIR go up and down completely randomly.
Pair Corralation between ULTRA CLEAN and HF SINCLAIR
Assuming the 90 days trading horizon ULTRA CLEAN HLDGS is expected to generate 1.69 times more return on investment than HF SINCLAIR. However, ULTRA CLEAN is 1.69 times more volatile than HF SINCLAIR P. It trades about 0.14 of its potential returns per unit of risk. HF SINCLAIR P is currently generating about 0.1 per unit of risk. If you would invest 3,380 in ULTRA CLEAN HLDGS on August 28, 2024 and sell it today you would earn a total of 320.00 from holding ULTRA CLEAN HLDGS or generate 9.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ULTRA CLEAN HLDGS vs. HF SINCLAIR P
Performance |
| Timeline |
| ULTRA CLEAN HLDGS |
| HF SINCLAIR P |
ULTRA CLEAN and HF SINCLAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ULTRA CLEAN and HF SINCLAIR
The main advantage of trading using opposite ULTRA CLEAN and HF SINCLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ULTRA CLEAN 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.| ULTRA CLEAN vs. Apple Inc | ULTRA CLEAN vs. Apple Inc | ULTRA CLEAN vs. Apple Inc | ULTRA CLEAN vs. Microsoft |
| HF SINCLAIR vs. Consolidated Communications Holdings | HF SINCLAIR vs. Iridium Communications | HF SINCLAIR vs. UNIVERSAL MUSIC GROUP | HF SINCLAIR vs. Spirent Communications plc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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