Correlation Between Global Partners and Sunoco LP
Can any of the company-specific risk be diversified away by investing in both Global Partners 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 Global Partners and Sunoco LP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Partners LP and Sunoco LP, you can compare the effects of market volatilities on Global Partners 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 Global Partners with a short position of Sunoco LP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Partners and Sunoco LP.
Diversification Opportunities for Global Partners and Sunoco LP
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Global and Sunoco is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Global Partners LP and Sunoco LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunoco LP and Global Partners 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 Global Partners LP 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 Global Partners i.e., Global Partners and Sunoco LP go up and down completely randomly.
Pair Corralation between Global Partners and Sunoco LP
Considering the 90-day investment horizon Global Partners LP is expected to under-perform the Sunoco LP. In addition to that, Global Partners is 1.32 times more volatile than Sunoco LP. It trades about -0.14 of its total potential returns per unit of risk. Sunoco LP is currently generating about 0.13 per unit of volatility. If you would invest 5,071 in Sunoco LP on September 1, 2025 and sell it today you would earn a total of 552.00 from holding Sunoco LP or generate 10.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Partners LP vs. Sunoco LP
Performance |
| Timeline |
| Global Partners LP |
| Sunoco LP |
Global Partners and Sunoco LP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Partners and Sunoco LP
The main advantage of trading using opposite Global Partners and Sunoco LP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Partners 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.| Global Partners vs. Pebblebrook Hotel Trust | Global Partners vs. EVO Transportation Energy | Global Partners vs. Hoteles City Express | Global Partners vs. Choice Hotels International |
| Sunoco LP vs. City Office REIT | Sunoco LP vs. Orthometrix | Sunoco LP vs. CITIC Telecom International | Sunoco LP vs. Delta Apparel, |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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