Correlation Between HF Sinclair and Visteon Corp
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Visteon Corp 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 HF Sinclair and Visteon Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HF Sinclair Corp and Visteon Corp, you can compare the effects of market volatilities on HF Sinclair and Visteon Corp 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 HF Sinclair with a short position of Visteon Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Visteon Corp.
Diversification Opportunities for HF Sinclair and Visteon Corp
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between DINO and Visteon is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Visteon Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Visteon Corp and HF Sinclair 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 HF Sinclair Corp are associated (or correlated) with Visteon Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visteon Corp has no effect on the direction of HF Sinclair i.e., HF Sinclair and Visteon Corp go up and down completely randomly.
Pair Corralation between HF Sinclair and Visteon Corp
Given the investment horizon of 90 days HF Sinclair Corp is expected to generate 0.94 times more return on investment than Visteon Corp. However, HF Sinclair Corp is 1.07 times less risky than Visteon Corp. It trades about 0.32 of its potential returns per unit of risk. Visteon Corp is currently generating about 0.24 per unit of risk. If you would invest 2,718 in HF Sinclair Corp on April 7, 2025 and sell it today you would earn a total of 1,698 from holding HF Sinclair Corp or generate 62.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF Sinclair Corp vs. Visteon Corp
Performance |
| Timeline |
| HF Sinclair Corp |
| Visteon Corp |
HF Sinclair and Visteon Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Visteon Corp
The main advantage of trading using opposite HF Sinclair and Visteon Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Visteon Corp 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 Visteon Corp will offset losses from the drop in Visteon Corp's long position.| HF Sinclair vs. Willscot Mobile Mini | HF Sinclair vs. PennantPark Investment | HF Sinclair vs. Royal Bank of | HF Sinclair vs. China Aircraft Leasing |
| Visteon Corp vs. United Rentals | Visteon Corp vs. FTAI Aviation Ltd | Visteon Corp vs. AerCap Holdings NV | Visteon Corp vs. Alta Equipment Group |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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