Correlation Between Rubis and Sunoco LP
Can any of the company-specific risk be diversified away by investing in both Rubis and Sunoco LP 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 Rubis and Sunoco LP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubis and Sunoco LP, you can compare the effects of market volatilities on Rubis and Sunoco LP 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 Rubis with a short position of Sunoco LP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubis and Sunoco LP.
Diversification Opportunities for Rubis and Sunoco LP
Very good diversification
The 3 months correlation between Rubis and Sunoco is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Rubis and Sunoco LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunoco LP and Rubis 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 Rubis are associated (or correlated) with Sunoco LP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunoco LP has no effect on the direction of Rubis i.e., Rubis and Sunoco LP go up and down completely randomly.
Pair Corralation between Rubis and Sunoco LP
If you would invest 5,058 in Sunoco LP on September 5, 2024 and sell it today you would earn a total of 624.00 from holding Sunoco LP or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Rubis vs. Sunoco LP
Performance |
| Timeline |
| Rubis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sunoco LP |
Rubis and Sunoco LP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubis and Sunoco LP
The main advantage of trading using opposite Rubis and Sunoco LP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubis position performs unexpectedly, Sunoco LP 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 LP will offset losses from the drop in Sunoco LP's long position.| Rubis vs. DCC PLC ADR | Rubis vs. Ultrapar Participacoes SA | Rubis vs. Sunoco LP | Rubis vs. HF Sinclair Corp |
| Sunoco LP vs. CVR Energy | Sunoco LP vs. PBF Energy | Sunoco LP vs. HF Sinclair Corp | Sunoco LP vs. Par Pacific 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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