Correlation Between HF Sinclair and Valvoline
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Valvoline 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 Valvoline 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 Valvoline, you can compare the effects of market volatilities on HF Sinclair and Valvoline 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 Valvoline. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Valvoline.
Diversification Opportunities for HF Sinclair and Valvoline
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DINO and Valvoline is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Valvoline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valvoline 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 Valvoline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valvoline has no effect on the direction of HF Sinclair i.e., HF Sinclair and Valvoline go up and down completely randomly.
Pair Corralation between HF Sinclair and Valvoline
Given the investment horizon of 90 days HF Sinclair Corp is expected to generate 1.39 times more return on investment than Valvoline. However, HF Sinclair is 1.39 times more volatile than Valvoline. It trades about 0.13 of its potential returns per unit of risk. Valvoline is currently generating about 0.05 per unit of risk. If you would invest 3,316 in HF Sinclair Corp on April 2, 2025 and sell it today you would earn a total of 792.00 from holding HF Sinclair Corp or generate 23.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF Sinclair Corp vs. Valvoline
Performance |
| Timeline |
| HF Sinclair Corp |
| Valvoline |
HF Sinclair and Valvoline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Valvoline
The main advantage of trading using opposite HF Sinclair and Valvoline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Valvoline 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 Valvoline will offset losses from the drop in Valvoline's long position.| HF Sinclair vs. First Ship Lease | HF Sinclair vs. ScanSource | HF Sinclair vs. Monster Beverage Corp | HF Sinclair vs. PROG Holdings |
| Valvoline vs. Zane Interactive Publishing | Valvoline vs. Mid Atlantic Home Health | Valvoline vs. Kilroy Realty Corp | Valvoline vs. Scholastic |
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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