Correlation Between Sunoco LP and Rubis
Can any of the company-specific risk be diversified away by investing in both Sunoco LP and Rubis 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 Rubis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunoco LP and Rubis, you can compare the effects of market volatilities on Sunoco LP and Rubis 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 Rubis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunoco LP and Rubis.
Diversification Opportunities for Sunoco LP and Rubis
Pay attention - limited upside
The 3 months correlation between Sunoco and Rubis is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Sunoco LP and Rubis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubis 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 Rubis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubis has no effect on the direction of Sunoco LP i.e., Sunoco LP and Rubis go up and down completely randomly.
Pair Corralation between Sunoco LP and Rubis
If you would invest 3,355 in Rubis on February 24, 2024 and sell it today you would earn a total of 0.00 from holding Rubis or generate 0.0% 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. Rubis
Performance |
Timeline |
Sunoco LP |
Rubis |
Sunoco LP and Rubis Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sunoco LP and Rubis
The main advantage of trading using opposite Sunoco LP and Rubis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunoco LP position performs unexpectedly, Rubis 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 Rubis will offset losses from the drop in Rubis' long position.Sunoco LP vs. Delek Energy | Sunoco LP vs. Crossamerica Partners LP | Sunoco LP vs. CVR Energy | Sunoco LP vs. Phillips 66 |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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