Correlation Between ADRIATIC METALS and SUN LIFE
Can any of the company-specific risk be diversified away by investing in both ADRIATIC METALS 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 ADRIATIC METALS and SUN LIFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADRIATIC METALS LS 013355 and SUN LIFE FINANCIAL, you can compare the effects of market volatilities on ADRIATIC METALS 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 ADRIATIC METALS with a short position of SUN LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADRIATIC METALS and SUN LIFE.
Diversification Opportunities for ADRIATIC METALS and SUN LIFE
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ADRIATIC and SUN is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding ADRIATIC METALS LS 013355 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 ADRIATIC METALS 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 ADRIATIC METALS LS 013355 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 ADRIATIC METALS i.e., ADRIATIC METALS and SUN LIFE go up and down completely randomly.
Pair Corralation between ADRIATIC METALS and SUN LIFE
Assuming the 90 days trading horizon ADRIATIC METALS LS 013355 is expected to generate 3.83 times more return on investment than SUN LIFE. However, ADRIATIC METALS is 3.83 times more volatile than SUN LIFE FINANCIAL. It trades about 0.04 of its potential returns per unit of risk. SUN LIFE FINANCIAL is currently generating about -0.14 per unit of risk. If you would invest 228.00 in ADRIATIC METALS LS 013355 on November 7, 2024 and sell it today you would earn a total of 4.00 from holding ADRIATIC METALS LS 013355 or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADRIATIC METALS LS 013355 vs. SUN LIFE FINANCIAL
Performance |
| Timeline |
| ADRIATIC METALS LS |
| SUN LIFE FINANCIAL |
ADRIATIC METALS and SUN LIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADRIATIC METALS and SUN LIFE
The main advantage of trading using opposite ADRIATIC METALS and SUN LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADRIATIC METALS 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.| ADRIATIC METALS vs. DATADOT TECHNOLOGY | ADRIATIC METALS vs. WILLIS LEASE FIN | ADRIATIC METALS vs. MICRONIC MYDATA | ADRIATIC METALS vs. Datadog |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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