Correlation Between Cedar Realty and HF Sinclair

Can any of the company-specific risk be diversified away by investing in both Cedar Realty 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 Cedar Realty and HF Sinclair into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cedar Realty Trust and HF Sinclair Corp, you can compare the effects of market volatilities on Cedar Realty 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 Cedar Realty with a short position of HF Sinclair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cedar Realty and HF Sinclair.

Diversification Opportunities for Cedar Realty and HF Sinclair

-0.47

Correlation Coefficient

Cedar Realty  HF Sinclair

Very good diversification

The 3 months correlation between Cedar and DINO is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Cedar Realty Trust 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 Cedar Realty 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 Cedar Realty Trust 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 Cedar Realty i.e., Cedar Realty and HF Sinclair go up and down completely randomly.

Pair Corralation between Cedar Realty and HF Sinclair

Assuming the 90 days trading horizon Cedar Realty Trust is expected to generate 1.34 times more return on investment than HF Sinclair. However, Cedar Realty is 1.34 times more volatile than HF Sinclair Corp. It trades about 0.11 of its potential returns per unit of risk. HF Sinclair Corp is currently generating about -0.1 per unit of risk. If you would invest  1,399  in Cedar Realty Trust on September 13, 2024 and sell it today you would earn a total of  249.00  from holding Cedar Realty Trust or generate 17.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Cedar Realty Trust  vs.  HF Sinclair Corp

Cedar Realty Trust

Risk-Adjusted Performance

8 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cedar Realty Trust are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat sluggish basic indicators, Cedar Realty sustained solid returns over the last few months and may actually be approaching a breakup point.

HF Sinclair Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HF Sinclair Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Cedar Realty and HF Sinclair

The main advantage of trading using opposite Cedar Realty and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cedar Realty 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.

The idea behind Cedar Realty Trust and HF Sinclair Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.