Correlation Between Uni Fuels and Sunoco LP

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

By analyzing existing cross correlation between Uni Fuels Holdings Limited and Sunoco LP, you can compare the effects of market volatilities on Uni Fuels 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 Uni Fuels with a short position of Sunoco LP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uni Fuels and Sunoco LP.

Diversification Opportunities for Uni Fuels and Sunoco LP

-0.46

Correlation Coefficient

Uni Fuels  Sunoco LP

Very good diversification

The 3 months correlation between Uni and Sunoco is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Uni Fuels Holdings Limited and Sunoco LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunoco LP and Uni Fuels 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 Uni Fuels Holdings Limited 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 Uni Fuels i.e., Uni Fuels and Sunoco LP go up and down completely randomly.

Pair Corralation between Uni Fuels and Sunoco LP

Considering the 90-day investment horizon Uni Fuels Holdings Limited is expected to generate 10.95 times more return on investment than Sunoco LP. However, Uni Fuels is 10.95 times more volatile than Sunoco LP. It trades about 0.01 of its potential returns per unit of risk. Sunoco LP is currently generating about 0.05 per unit of risk. If you would invest  242.00  in Uni Fuels Holdings Limited on July 23, 2025 and sell it today you would lose (140.00) from holding Uni Fuels Holdings Limited or give up 57.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Uni Fuels Holdings Limited  vs.  Sunoco LP

Uni Fuels Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Uni Fuels Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Uni Fuels is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Sunoco LP

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Sunoco LP are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Sunoco LP is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Uni Fuels and Sunoco LP

The main advantage of trading using opposite Uni Fuels and Sunoco LP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uni Fuels 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.

The idea behind Uni Fuels Holdings Limited and Sunoco LP 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.