Correlation Between Willamette Valley and HF Sinclair
Can any of the company-specific risk be diversified away by investing in both Willamette Valley 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 Willamette Valley and HF Sinclair into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Willamette Valley Vineyards and HF Sinclair Corp, you can compare the effects of market volatilities on Willamette Valley 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 Willamette Valley with a short position of HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willamette Valley and HF Sinclair.
Diversification Opportunities for Willamette Valley and HF Sinclair
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Willamette and DINO is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Willamette Valley Vineyards 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 Willamette Valley 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 Willamette Valley Vineyards 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 Willamette Valley i.e., Willamette Valley and HF Sinclair go up and down completely randomly.
Pair Corralation between Willamette Valley and HF Sinclair
Given the investment horizon of 90 days Willamette Valley Vineyards is expected to generate 1.12 times more return on investment than HF Sinclair. However, Willamette Valley is 1.12 times more volatile than HF Sinclair Corp. It trades about -0.06 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 410.00 in Willamette Valley Vineyards on September 3, 2024 and sell it today you would lose (73.00) from holding Willamette Valley Vineyards or give up 17.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Willamette Valley Vineyards vs. HF Sinclair Corp
Performance |
| Timeline |
| Willamette Valley |
| HF Sinclair Corp |
Willamette Valley and HF Sinclair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willamette Valley and HF Sinclair
The main advantage of trading using opposite Willamette Valley and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willamette Valley 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.| Willamette Valley vs. Naked Wines plc | Willamette Valley vs. Andrew Peller Limited | Willamette Valley vs. Iconic Brands | Willamette Valley vs. Naked Wines plc |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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