Correlation Between Varex Imaging and Sunoco LP
Can any of the company-specific risk be diversified away by investing in both Varex Imaging 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 Varex Imaging and Sunoco LP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Varex Imaging Corp and Sunoco LP, you can compare the effects of market volatilities on Varex Imaging 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 Varex Imaging with a short position of Sunoco LP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Varex Imaging and Sunoco LP.
Diversification Opportunities for Varex Imaging and Sunoco LP
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Varex and Sunoco is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Varex Imaging Corp and Sunoco LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunoco LP and Varex Imaging 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 Varex Imaging Corp 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 Varex Imaging i.e., Varex Imaging and Sunoco LP go up and down completely randomly.
Pair Corralation between Varex Imaging and Sunoco LP
Given the investment horizon of 90 days Varex Imaging Corp is expected to generate 2.36 times more return on investment than Sunoco LP. However, Varex Imaging is 2.36 times more volatile than Sunoco LP. It trades about 0.0 of its potential returns per unit of risk. Sunoco LP is currently generating about -0.09 per unit of risk. If you would invest 760.00 in Varex Imaging Corp on April 23, 2025 and sell it today you would lose (36.00) from holding Varex Imaging Corp or give up 4.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Varex Imaging Corp vs. Sunoco LP
Performance |
| Timeline |
| Varex Imaging Corp |
| Sunoco LP |
Varex Imaging and Sunoco LP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Varex Imaging and Sunoco LP
The main advantage of trading using opposite Varex Imaging and Sunoco LP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Varex Imaging 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.| Varex Imaging vs. Heart Test Laboratories | Varex Imaging vs. ReShape Lifesciences | Varex Imaging vs. Inspira Technologies Oxy | Varex Imaging vs. Xenetic Biosciences |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |