Hoekstra Trading releases Hoekstra Research Report 12 – Renewable Identification Number (RIN) Market Pricing Model
Hoekstra Trading today released its 12th annual research report titled Hoekstra Research Report 12 – Renewable Identification Number (RIN) Market Pricing Model. The report is available to anyone and includes a new user spreadsheet that calculates flow rates and prices of all fuels and RINs in markets affected by the RIN credit.
In particular, this new spreadsheet calculates theoretical prices of all four categories of RINs using a fundamental economic model taken from Chapter 2 of this dissertation by Ben Meiselman.
This new spreadsheet calculates theoretical prices of all four categories of RINs
Our original ATTRACTOR spreadsheet, released October 31 2020, applies a fundamental model published by Scott Irwin, Kristin McCormick and James H. Stock to calculate the theoretical price of a D4 RIN using option pricing theory.
These two academic gems, now combined into a user friendly spreadsheet, offer a wealth of untapped opportunities to RIN traders.
Those opportunities exist because of unusual price inter-relationships caused by the RIN’s complexity that are not recognized in today’s trading markets and cannot be grasped or anticipated without help from a proper tool.
Hoekstra Trading’s original ATTRACTOR spreadsheet has a proven 4-year track record helping users find and capture those opportunities in the D4 RIN market. This new product expands that capability to all segments of RIN market.
Recommendation
Get Hoekstra Research Report 10
It includes the ATTRACTOR spreadsheet which calculates D4T, the theoretical value of a D4 RIN, using economic fundamentals. Hoekstra Trading clients use the ATTRACTOR spreadsheet to compare theoretical and market Renewable Identification Number (RIN) prices, analyze departures from theoretical value, and identify trading opportunities on the premise RIN market prices will be attracted toward their fundamental economic values.
Get the Attractor spreadsheet, it is included with Hoekstra Research Report 10 and is available to anyone at negligible cost.
