Correlation Between Safety Insurance and HF SINCLAIR
Can any of the company-specific risk be diversified away by investing in both Safety Insurance 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 Safety Insurance and HF SINCLAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safety Insurance Group and HF SINCLAIR P, you can compare the effects of market volatilities on Safety Insurance 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 Safety Insurance with a short position of HF SINCLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safety Insurance and HF SINCLAIR.
Diversification Opportunities for Safety Insurance and HF SINCLAIR
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Safety and HL80 is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Safety Insurance Group and HF SINCLAIR P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF SINCLAIR P and Safety Insurance 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 Safety Insurance Group 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 P has no effect on the direction of Safety Insurance i.e., Safety Insurance and HF SINCLAIR go up and down completely randomly.
Pair Corralation between Safety Insurance and HF SINCLAIR
Assuming the 90 days horizon Safety Insurance Group is expected to generate 0.78 times more return on investment than HF SINCLAIR. However, Safety Insurance Group is 1.29 times less risky than HF SINCLAIR. It trades about 0.02 of its potential returns per unit of risk. HF SINCLAIR P is currently generating about -0.02 per unit of risk. If you would invest 7,012 in Safety Insurance Group on September 26, 2024 and sell it today you would earn a total of 838.00 from holding Safety Insurance Group or generate 11.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Safety Insurance Group vs. HF SINCLAIR P
Performance |
Timeline |
Safety Insurance |
HF SINCLAIR P |
Safety Insurance and HF SINCLAIR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Safety Insurance and HF SINCLAIR
The main advantage of trading using opposite Safety Insurance and HF SINCLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safety Insurance 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.Safety Insurance vs. The Progressive | Safety Insurance vs. The Allstate | Safety Insurance vs. PICC Property and | Safety Insurance vs. Cincinnati Financial |
HF SINCLAIR vs. Safety Insurance Group | HF SINCLAIR vs. Goosehead Insurance | HF SINCLAIR vs. INSURANCE AUST GRP | HF SINCLAIR vs. CODERE ONLINE LUX |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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