Correlation Between Sunoco LP and Motor Oil
Can any of the company-specific risk be diversified away by investing in both Sunoco LP and Motor Oil 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 Sunoco LP and Motor Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunoco LP and Motor Oil Hellas, you can compare the effects of market volatilities on Sunoco LP and Motor Oil 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 Sunoco LP with a short position of Motor Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunoco LP and Motor Oil.
Diversification Opportunities for Sunoco LP and Motor Oil
Excellent diversification
The 3 months correlation between Sunoco and Motor is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Sunoco LP and Motor Oil Hellas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Motor Oil Hellas and Sunoco LP 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 Sunoco LP are associated (or correlated) with Motor Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Motor Oil Hellas has no effect on the direction of Sunoco LP i.e., Sunoco LP and Motor Oil go up and down completely randomly.
Pair Corralation between Sunoco LP and Motor Oil
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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunoco LP vs. Motor Oil Hellas
Performance |
| Timeline |
| Sunoco LP |
| Motor Oil Hellas |
Sunoco LP and Motor Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunoco LP and Motor Oil
The main advantage of trading using opposite Sunoco LP and Motor Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunoco LP position performs unexpectedly, Motor Oil 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 Motor Oil will offset losses from the drop in Motor Oil's long position.| Sunoco LP vs. CVR Energy | Sunoco LP vs. PBF Energy | Sunoco LP vs. HF Sinclair Corp | Sunoco LP vs. Par Pacific Holdings |
| Motor Oil vs. Neste Oyj | Motor Oil vs. Icahn Enterprises LP | Motor Oil vs. Neste Oyj | Motor Oil vs. Cosan SA ADR |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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