Correlation Between Suburban Propane and NORTHROP
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By analyzing existing cross correlation between Suburban Propane Partners and NORTHROP GRUMMAN P, you can compare the effects of market volatilities on Suburban Propane and NORTHROP 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 Suburban Propane with a short position of NORTHROP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suburban Propane and NORTHROP.
Diversification Opportunities for Suburban Propane and NORTHROP
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Suburban and NORTHROP is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Suburban Propane Partners and NORTHROP GRUMMAN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORTHROP GRUMMAN P and Suburban Propane 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 Suburban Propane Partners are associated (or correlated) with NORTHROP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORTHROP GRUMMAN P has no effect on the direction of Suburban Propane i.e., Suburban Propane and NORTHROP go up and down completely randomly.
Pair Corralation between Suburban Propane and NORTHROP
Considering the 90-day investment horizon Suburban Propane Partners is expected to generate 1.85 times more return on investment than NORTHROP. However, Suburban Propane is 1.85 times more volatile than NORTHROP GRUMMAN P. It trades about 0.08 of its potential returns per unit of risk. NORTHROP GRUMMAN P is currently generating about -0.1 per unit of risk. If you would invest 1,752 in Suburban Propane Partners on September 12, 2024 and sell it today you would earn a total of 143.00 from holding Suburban Propane Partners or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.31% |
| Values | Daily Returns |
Suburban Propane Partners vs. NORTHROP GRUMMAN P
Performance |
| Timeline |
| Suburban Propane Partners |
| NORTHROP GRUMMAN P |
Suburban Propane and NORTHROP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suburban Propane and NORTHROP
The main advantage of trading using opposite Suburban Propane and NORTHROP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suburban Propane position performs unexpectedly, NORTHROP 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 NORTHROP will offset losses from the drop in NORTHROP's long position.| Suburban Propane vs. Atmos Energy | Suburban Propane vs. One Gas | Suburban Propane vs. NiSource | Suburban Propane vs. Aquagold International |
| NORTHROP vs. Luxfer Holdings PLC | NORTHROP vs. Siriuspoint | NORTHROP vs. United Fire Group | NORTHROP vs. Citizens |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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