Correlation Between PBF Energy and Sunrun
Can any of the company-specific risk be diversified away by investing in both PBF Energy and Sunrun 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 PBF Energy and Sunrun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PBF Energy and Sunrun Inc, you can compare the effects of market volatilities on PBF Energy and Sunrun 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 PBF Energy with a short position of Sunrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of PBF Energy and Sunrun.
Diversification Opportunities for PBF Energy and Sunrun
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PBF and Sunrun is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding PBF Energy and Sunrun Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunrun Inc and PBF Energy 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 PBF Energy are associated (or correlated) with Sunrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunrun Inc has no effect on the direction of PBF Energy i.e., PBF Energy and Sunrun go up and down completely randomly.
Pair Corralation between PBF Energy and Sunrun
Considering the 90-day investment horizon PBF Energy is expected to generate 0.83 times more return on investment than Sunrun. However, PBF Energy is 1.2 times less risky than Sunrun. It trades about 0.16 of its potential returns per unit of risk. Sunrun Inc is currently generating about 0.05 per unit of risk. If you would invest 2,465 in PBF Energy on August 26, 2025 and sell it today you would earn a total of 1,006 from holding PBF Energy or generate 40.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PBF Energy vs. Sunrun Inc
Performance |
| Timeline |
| PBF Energy |
| Sunrun Inc |
PBF Energy and Sunrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PBF Energy and Sunrun
The main advantage of trading using opposite PBF Energy and Sunrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PBF Energy position performs unexpectedly, Sunrun 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 Sunrun will offset losses from the drop in Sunrun's long position.| PBF Energy vs. Hana Microelectronics Public | PBF Energy vs. Slide Insurance Holdings, | PBF Energy vs. STMicroelectronics NV | PBF Energy vs. Shanghai Fudan Microelectronics |
| Sunrun vs. Integrated Drilling Equipment | Sunrun vs. Air Lease | Sunrun vs. Mayfair Gold Corp | Sunrun vs. EvoAir Holdings |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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