Correlation Between Quanex Building and HF Sinclair

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

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

Diversification Opportunities for Quanex Building and HF Sinclair

-0.67

Correlation Coefficient

Quanex Building  HF Sinclair

Excellent diversification

The 3 months correlation between Quanex and DINO is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Quanex Building Products 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 Quanex Building 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 Quanex Building Products 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 Quanex Building i.e., Quanex Building and HF Sinclair go up and down completely randomly.

Pair Corralation between Quanex Building and HF Sinclair

Allowing for the 90-day total investment horizon Quanex Building Products is expected to under-perform the HF Sinclair. In addition to that, Quanex Building is 1.98 times more volatile than HF Sinclair Corp. It trades about -0.12 of its total potential returns per unit of risk. HF Sinclair Corp is currently generating about 0.14 per unit of volatility. If you would invest  4,440  in HF Sinclair Corp on July 8, 2025 and sell it today you would earn a total of  729.00  from holding HF Sinclair Corp or generate 16.42% return on investment over 90 days.

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

Quanex Building Products  vs.  HF Sinclair Corp

Quanex Building Products

Risk-Adjusted Performance

Weakest

Over the last 90 days Quanex Building Products has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

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 11 (%) 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 Quanex Building and HF Sinclair

The main advantage of trading using opposite Quanex Building and HF Sinclair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quanex Building 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 Quanex Building Products 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 Commodity Directory module to find actively traded commodities issued by global exchanges.