Correlation Between HF Sinclair and Western Midstream
Can any of the company-specific risk be diversified away by investing in both HF Sinclair and Western Midstream 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 Western Midstream 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 Western Midstream Partners, you can compare the effects of market volatilities on HF Sinclair and Western Midstream 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 Western Midstream. Check out your portfolio center. Please also check ongoing floating volatility patterns of HF Sinclair and Western Midstream.
Diversification Opportunities for HF Sinclair and Western Midstream
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DINO and Western is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding HF Sinclair Corp and Western Midstream Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Midstream 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 Western Midstream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Midstream has no effect on the direction of HF Sinclair i.e., HF Sinclair and Western Midstream go up and down completely randomly.
Pair Corralation between HF Sinclair and Western Midstream
Given the investment horizon of 90 days HF Sinclair Corp is expected to under-perform the Western Midstream. In addition to that, HF Sinclair is 2.38 times more volatile than Western Midstream Partners. It trades about -0.03 of its total potential returns per unit of risk. Western Midstream Partners is currently generating about 0.17 per unit of volatility. If you would invest 3,774 in Western Midstream Partners on August 27, 2025 and sell it today you would earn a total of 126.50 from holding Western Midstream Partners or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HF Sinclair Corp vs. Western Midstream Partners
Performance |
| Timeline |
| HF Sinclair Corp |
| Western Midstream |
HF Sinclair and Western Midstream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HF Sinclair and Western Midstream
The main advantage of trading using opposite HF Sinclair and Western Midstream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HF Sinclair position performs unexpectedly, Western Midstream 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 Western Midstream will offset losses from the drop in Western Midstream's long position.| HF Sinclair vs. Xtant Medical Holdings | HF Sinclair vs. BlackRock Investment Quality | HF Sinclair vs. Lombard Medical | HF Sinclair vs. Amexdrug |
| Western Midstream vs. HPQ Silicon Resources | Western Midstream vs. Park Electrochemical | Western Midstream vs. Dream Industrial Real | Western Midstream vs. Prosperity Real Estate |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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