Correlation Between ScanSource and HF SINCLAIR

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

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

Diversification Opportunities for ScanSource and HF SINCLAIR

-0.3

Correlation Coefficient

ScanSource  HF SINCLAIR

Very good diversification

The 3 months correlation between ScanSource and HL80 is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding ScanSource 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 ScanSource 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 ScanSource 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 ScanSource i.e., ScanSource and HF SINCLAIR go up and down completely randomly.

Pair Corralation between ScanSource and HF SINCLAIR

Assuming the 90 days horizon ScanSource is expected to under-perform the HF SINCLAIR. But the stock apears to be less risky and, when comparing its historical volatility, ScanSource is 1.22 times less risky than HF SINCLAIR. The stock trades about -0.09 of its potential returns per unit of risk. The HF SINCLAIR P is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  3,230  in HF SINCLAIR P on May 14, 2025 and sell it today you would earn a total of  490.00  from holding HF SINCLAIR P or generate 15.17% return on investment over 90 days.

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

ScanSource  vs.  HF SINCLAIR P

ScanSource

Risk-Adjusted Performance

Weakest

Over the last 90 days ScanSource has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

HF SINCLAIR P

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in HF SINCLAIR P are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, HF SINCLAIR reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ScanSource and HF SINCLAIR

The main advantage of trading using opposite ScanSource and HF SINCLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ScanSource 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 ScanSource and HF SINCLAIR P 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.