Correlation Between International Game and Sun Life
Can any of the company-specific risk be diversified away by investing in both International Game 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 International Game and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Game Technology and Sun Life Financial, you can compare the effects of market volatilities on International Game 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 International Game with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and Sun Life.
Diversification Opportunities for International Game and Sun Life
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Sun is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology 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 International Game 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 International Game Technology 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 International Game i.e., International Game and Sun Life go up and down completely randomly.
Pair Corralation between International Game and Sun Life
Assuming the 90 days horizon International Game Technology is expected to under-perform the Sun Life. In addition to that, International Game is 3.32 times more volatile than Sun Life Financial. It trades about -0.17 of its total potential returns per unit of risk. Sun Life Financial is currently generating about -0.17 per unit of volatility. If you would invest 5,750 in Sun Life Financial on October 12, 2024 and sell it today you would lose (100.00) from holding Sun Life Financial or give up 1.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Game Technology vs. Sun Life Financial
Performance |
| Timeline |
| International Game |
| Sun Life Financial |
International Game and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and Sun Life
The main advantage of trading using opposite International Game and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game 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.| International Game vs. LANDSEA GREEN MANAGEMENT | International Game vs. CEOTRONICS | International Game vs. MAVEN WIRELESS SWEDEN | International Game vs. CeoTronics AG |
| Sun Life vs. QINGCI GAMES INC | Sun Life vs. Scientific Games | Sun Life vs. International Game Technology | Sun Life vs. GAMING FAC SA |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance |