Correlation Between Pfizer and SUNOCO
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By analyzing existing cross correlation between Pfizer Inc and SUNOCO LOGISTICS PARTNERS, you can compare the effects of market volatilities on Pfizer and SUNOCO 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 Pfizer with a short position of SUNOCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfizer and SUNOCO.
Diversification Opportunities for Pfizer and SUNOCO
Very weak diversification
The 3 months correlation between Pfizer and SUNOCO is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Pfizer Inc and SUNOCO LOGISTICS PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNOCO LOGISTICS PARTNERS and Pfizer 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 Pfizer Inc are associated (or correlated) with SUNOCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNOCO LOGISTICS PARTNERS has no effect on the direction of Pfizer i.e., Pfizer and SUNOCO go up and down completely randomly.
Pair Corralation between Pfizer and SUNOCO
Considering the 90-day investment horizon Pfizer Inc is expected to under-perform the SUNOCO. In addition to that, Pfizer is 1.83 times more volatile than SUNOCO LOGISTICS PARTNERS. It trades about -0.21 of its total potential returns per unit of risk. SUNOCO LOGISTICS PARTNERS is currently generating about 0.03 per unit of volatility. If you would invest 10,055 in SUNOCO LOGISTICS PARTNERS on September 5, 2024 and sell it today you would earn a total of 36.00 from holding SUNOCO LOGISTICS PARTNERS or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 68.18% |
| Values | Daily Returns |
Pfizer Inc vs. SUNOCO LOGISTICS PARTNERS
Performance |
| Timeline |
| Pfizer Inc |
| SUNOCO LOGISTICS PARTNERS |
Pfizer and SUNOCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfizer and SUNOCO
The main advantage of trading using opposite Pfizer and SUNOCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfizer position performs unexpectedly, SUNOCO 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 SUNOCO will offset losses from the drop in SUNOCO's long position.| Pfizer vs. Crinetics Pharmaceuticals | Pfizer vs. Enanta Pharmaceuticals | Pfizer vs. Amicus Therapeutics | Pfizer vs. Connect Biopharma Holdings |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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