Correlation Between WEBTOON Entertainment and SUNOCO

Can any of the company-specific risk be diversified away by investing in both WEBTOON Entertainment and SUNOCO 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 WEBTOON Entertainment and SUNOCO into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between WEBTOON Entertainment Common and SUNOCO LOGISTICS PARTNERS, you can compare the effects of market volatilities on WEBTOON Entertainment and SUNOCO 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 WEBTOON Entertainment with a short position of SUNOCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEBTOON Entertainment and SUNOCO.

Diversification Opportunities for WEBTOON Entertainment and SUNOCO

0.0

Correlation Coefficient

WEBTOON Entertainment  SUNOCO

Pay attention - limited upside

The 3 months correlation between WEBTOON and SUNOCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WEBTOON Entertainment Common and SUNOCO LOGISTICS PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNOCO LOGISTICS PARTNERS and WEBTOON Entertainment 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 WEBTOON Entertainment Common are associated (or correlated) with SUNOCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNOCO LOGISTICS PARTNERS has no effect on the direction of WEBTOON Entertainment i.e., WEBTOON Entertainment and SUNOCO go up and down completely randomly.

Pair Corralation between WEBTOON Entertainment and SUNOCO

If you would invest  1,060  in WEBTOON Entertainment Common on October 9, 2024 and sell it today you would earn a total of  323.00  from holding WEBTOON Entertainment Common or generate 30.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

WEBTOON Entertainment Common  vs.  SUNOCO LOGISTICS PARTNERS

WEBTOON Entertainment

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in WEBTOON Entertainment Common are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, WEBTOON Entertainment displayed solid returns over the last few months and may actually be approaching a breakup point.

SUNOCO LOGISTICS PARTNERS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SUNOCO LOGISTICS PARTNERS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SUNOCO is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with WEBTOON Entertainment and SUNOCO

The main advantage of trading using opposite WEBTOON Entertainment and SUNOCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEBTOON Entertainment position performs unexpectedly, SUNOCO 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 will offset losses from the drop in SUNOCO's long position.

The idea behind WEBTOON Entertainment Common and SUNOCO LOGISTICS PARTNERS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.