Correlation Between Belden and Sunoco LP
Can any of the company-specific risk be diversified away by investing in both Belden 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 Belden and Sunoco LP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Belden Inc and Sunoco LP, you can compare the effects of market volatilities on Belden 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 Belden with a short position of Sunoco LP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Belden and Sunoco LP.
Diversification Opportunities for Belden and Sunoco LP
Good diversification
The 3 months correlation between Belden and Sunoco is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Belden Inc and Sunoco LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunoco LP and Belden 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 Belden Inc 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 Belden i.e., Belden and Sunoco LP go up and down completely randomly.
Pair Corralation between Belden and Sunoco LP
Considering the 90-day investment horizon Belden Inc is expected to generate 1.31 times more return on investment than Sunoco LP. However, Belden is 1.31 times more volatile than Sunoco LP. It trades about 0.16 of its potential returns per unit of risk. Sunoco LP is currently generating about 0.01 per unit of risk. If you would invest 10,802 in Belden Inc on June 4, 2025 and sell it today you would earn a total of 2,218 from holding Belden Inc or generate 20.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Belden Inc vs. Sunoco LP
Performance |
| Timeline |
| Belden Inc |
| Sunoco LP |
Belden and Sunoco LP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Belden and Sunoco LP
The main advantage of trading using opposite Belden and Sunoco LP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Belden 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.| Belden vs. ADTRAN Inc | Belden vs. Aviat Networks | Belden vs. Benchmark Electronics | Belden vs. Badger Meter |
| Sunoco LP vs. Crossamerica Partners LP | Sunoco LP vs. CVR Energy | Sunoco LP vs. HF Sinclair Corp | Sunoco LP vs. Delek Logistics Partners |
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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