Correlation Between Definitive Healthcare and HF Sinclair

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

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

Diversification Opportunities for Definitive Healthcare and HF Sinclair

0.24

Correlation Coefficient

Definitive Healthcare  HF Sinclair

Modest diversification

The 3 months correlation between Definitive and DINO is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Definitive Healthcare Corp 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 Definitive Healthcare 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 Definitive Healthcare Corp 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 Definitive Healthcare i.e., Definitive Healthcare and HF Sinclair go up and down completely randomly.

Pair Corralation between Definitive Healthcare and HF Sinclair

Allowing for the 90-day total investment horizon Definitive Healthcare is expected to generate 1.64 times less return on investment than HF Sinclair. In addition to that, Definitive Healthcare is 1.96 times more volatile than HF Sinclair Corp. It trades about 0.08 of its total potential returns per unit of risk. HF Sinclair Corp is currently generating about 0.25 per unit of volatility. If you would invest  2,689  in HF Sinclair Corp on July 5, 2025 and sell it today you would earn a total of  2,480  from holding HF Sinclair Corp or generate 92.23% return on investment over 90 days.

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

Definitive Healthcare Corp  vs.  HF Sinclair Corp

Definitive Healthcare

Risk-Adjusted Performance

Weakest

Over the last 90 days Definitive Healthcare Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's technical indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

HF Sinclair Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in HF Sinclair Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, HF Sinclair displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Definitive Healthcare and HF Sinclair

The main advantage of trading using opposite Definitive Healthcare and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Definitive Healthcare 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 Definitive Healthcare Corp 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.