Correlation Between SIVERS SEMICONDUCTORS and Sun Life
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and Sun Life 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 SIVERS SEMICONDUCTORS and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIVERS SEMICONDUCTORS AB and Sun Life Financial, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and Sun Life 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 SIVERS SEMICONDUCTORS with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and Sun Life.
Diversification Opportunities for SIVERS SEMICONDUCTORS and Sun Life
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SIVERS and Sun is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and Sun Life Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Life Financial and SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS AB are associated (or correlated) with Sun Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Life Financial has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Sun Life go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and Sun Life
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to generate 13.82 times more return on investment than Sun Life. However, SIVERS SEMICONDUCTORS is 13.82 times more volatile than Sun Life Financial. It trades about 0.37 of its potential returns per unit of risk. Sun Life Financial is currently generating about -0.13 per unit of risk. If you would invest 14.00 in SIVERS SEMICONDUCTORS AB on September 22, 2024 and sell it today you would earn a total of 14.00 from holding SIVERS SEMICONDUCTORS AB or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. Sun Life Financial
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| Sun Life Financial |
SIVERS SEMICONDUCTORS and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and Sun Life
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, Sun Life 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 Sun Life will offset losses from the drop in Sun Life's long position.| SIVERS SEMICONDUCTORS vs. Taiwan Semiconductor Manufacturing | SIVERS SEMICONDUCTORS vs. Broadcom | SIVERS SEMICONDUCTORS vs. Superior Plus Corp | SIVERS SEMICONDUCTORS vs. Norsk Hydro ASA |
| Sun Life vs. Berkshire Hathaway | Sun Life vs. Berkshire Hathaway | Sun Life vs. Zurich Insurance Group | Sun Life vs. American International Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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