Correlation Between Leonardo DRS, and Sunoco LP
Can any of the company-specific risk be diversified away by investing in both Leonardo DRS, 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 Leonardo DRS, and Sunoco LP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leonardo DRS, Common and Sunoco LP, you can compare the effects of market volatilities on Leonardo DRS, 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 Leonardo DRS, with a short position of Sunoco LP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leonardo DRS, and Sunoco LP.
Diversification Opportunities for Leonardo DRS, and Sunoco LP
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Leonardo and Sunoco is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Leonardo DRS, Common and Sunoco LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunoco LP and Leonardo DRS, 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 Leonardo DRS, Common 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 Leonardo DRS, i.e., Leonardo DRS, and Sunoco LP go up and down completely randomly.
Pair Corralation between Leonardo DRS, and Sunoco LP
Considering the 90-day investment horizon Leonardo DRS, Common is expected to generate 1.23 times more return on investment than Sunoco LP. However, Leonardo DRS, is 1.23 times more volatile than Sunoco LP. It trades about 0.19 of its potential returns per unit of risk. Sunoco LP is currently generating about -0.08 per unit of risk. If you would invest 3,663 in Leonardo DRS, Common on April 24, 2025 and sell it today you would earn a total of 1,016 from holding Leonardo DRS, Common or generate 27.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leonardo DRS, Common vs. Sunoco LP
Performance |
| Timeline |
| Leonardo DRS, Common |
| Sunoco LP |
Leonardo DRS, and Sunoco LP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leonardo DRS, and Sunoco LP
The main advantage of trading using opposite Leonardo DRS, and Sunoco LP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leonardo DRS, 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.| Leonardo DRS, vs. Mercury Systems | Leonardo DRS, vs. Triumph Group | Leonardo DRS, vs. CAE Inc | Leonardo DRS, vs. AAR Corp |
| Sunoco LP vs. Delek Energy | Sunoco LP vs. Crossamerica Partners LP | Sunoco LP vs. CVR Energy | Sunoco LP vs. Phillips 66 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |