Correlation Between Evolution Mining and HF SINCLAIR
Can any of the company-specific risk be diversified away by investing in both Evolution Mining 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 Evolution Mining and HF SINCLAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolution Mining Limited and HF SINCLAIR P, you can compare the effects of market volatilities on Evolution Mining 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 Evolution Mining with a short position of HF SINCLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Mining and HF SINCLAIR.
Diversification Opportunities for Evolution Mining and HF SINCLAIR
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Evolution and HL80 is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Mining Limited 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 Evolution Mining 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 Evolution Mining 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 P has no effect on the direction of Evolution Mining i.e., Evolution Mining and HF SINCLAIR go up and down completely randomly.
Pair Corralation between Evolution Mining and HF SINCLAIR
Assuming the 90 days horizon Evolution Mining Limited is expected to under-perform the HF SINCLAIR. In addition to that, Evolution Mining is 1.39 times more volatile than HF SINCLAIR P. It trades about -0.05 of its total potential returns per unit of risk. HF SINCLAIR P is currently generating about 0.36 per unit of volatility. If you would invest 3,456 in HF SINCLAIR P on September 1, 2024 and sell it today you would earn a total of 384.00 from holding HF SINCLAIR P or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolution Mining Limited vs. HF SINCLAIR P
Performance |
| Timeline |
| Evolution Mining |
| HF SINCLAIR P |
Evolution Mining and HF SINCLAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Mining and HF SINCLAIR
The main advantage of trading using opposite Evolution Mining and HF SINCLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Mining 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.| Evolution Mining vs. Mitsubishi Gas Chemical | Evolution Mining vs. Shin Etsu Chemical Co | Evolution Mining vs. Siamgas And Petrochemicals | Evolution Mining vs. Tyson Foods |
| HF SINCLAIR vs. Superior Plus Corp | HF SINCLAIR vs. NMI Holdings | HF SINCLAIR vs. Origin Agritech | HF SINCLAIR vs. SIVERS SEMICONDUCTORS AB |
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 CEOs Directory module to screen CEOs from public companies around the world.
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