Correlation Between SUNOCO and Victorias Secret
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By analyzing existing cross correlation between SUNOCO LOGISTICS PARTNERS and Victorias Secret Co, you can compare the effects of market volatilities on SUNOCO and Victorias Secret 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 with a short position of Victorias Secret. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUNOCO and Victorias Secret.
Diversification Opportunities for SUNOCO and Victorias Secret
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SUNOCO and Victorias is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding SUNOCO LOGISTICS PARTNERS and Victorias Secret Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victorias Secret and SUNOCO 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 LOGISTICS PARTNERS are associated (or correlated) with Victorias Secret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victorias Secret has no effect on the direction of SUNOCO i.e., SUNOCO and Victorias Secret go up and down completely randomly.
Pair Corralation between SUNOCO and Victorias Secret
Assuming the 90 days trading horizon SUNOCO LOGISTICS PARTNERS is expected to generate 19.52 times more return on investment than Victorias Secret. However, SUNOCO is 19.52 times more volatile than Victorias Secret Co. It trades about 0.07 of its potential returns per unit of risk. Victorias Secret Co is currently generating about 0.02 per unit of risk. If you would invest 9,689 in SUNOCO LOGISTICS PARTNERS on September 4, 2024 and sell it today you would earn a total of 402.00 from holding SUNOCO LOGISTICS PARTNERS or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 71.11% |
| Values | Daily Returns |
SUNOCO LOGISTICS PARTNERS vs. Victorias Secret Co
Performance |
| Timeline |
| SUNOCO LOGISTICS PARTNERS |
| Victorias Secret |
SUNOCO and Victorias Secret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUNOCO and Victorias Secret
The main advantage of trading using opposite SUNOCO and Victorias Secret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUNOCO position performs unexpectedly, Victorias Secret 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 Victorias Secret will offset losses from the drop in Victorias Secret's long position.| SUNOCO vs. Victorias Secret Co | SUNOCO vs. Weibo Corp | SUNOCO vs. Playtika Holding Corp | SUNOCO vs. Steven Madden |
| Victorias Secret vs. Ross Stores | Victorias Secret vs. Childrens Place | Victorias Secret vs. Buckle Inc | Victorias Secret vs. Guess Inc |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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