Correlation Between KOOL2PLAY and Sun Life
Can any of the company-specific risk be diversified away by investing in both KOOL2PLAY 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 KOOL2PLAY and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KOOL2PLAY SA ZY and Sun Life Financial, you can compare the effects of market volatilities on KOOL2PLAY 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 KOOL2PLAY with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of KOOL2PLAY and Sun Life.
Diversification Opportunities for KOOL2PLAY and Sun Life
Very good diversification
The 3 months correlation between KOOL2PLAY and Sun is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding KOOL2PLAY SA ZY 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 KOOL2PLAY 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 KOOL2PLAY SA ZY 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 KOOL2PLAY i.e., KOOL2PLAY and Sun Life go up and down completely randomly.
Pair Corralation between KOOL2PLAY and Sun Life
Assuming the 90 days horizon KOOL2PLAY SA ZY is expected to generate 6.1 times more return on investment than Sun Life. However, KOOL2PLAY is 6.1 times more volatile than Sun Life Financial. It trades about 0.02 of its potential returns per unit of risk. Sun Life Financial is currently generating about 0.04 per unit of risk. If you would invest 32.00 in KOOL2PLAY SA ZY on December 4, 2024 and sell it today you would lose (8.00) from holding KOOL2PLAY SA ZY or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KOOL2PLAY SA ZY vs. Sun Life Financial
Performance |
| Timeline |
| KOOL2PLAY SA ZY |
| Sun Life Financial |
KOOL2PLAY and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KOOL2PLAY and Sun Life
The main advantage of trading using opposite KOOL2PLAY and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KOOL2PLAY 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.| KOOL2PLAY vs. Sims Metal Management | KOOL2PLAY vs. INTERCONT HOTELS | KOOL2PLAY vs. PPHE HOTEL GROUP | KOOL2PLAY vs. Waste Management |
| Sun Life vs. US Foods Holding | Sun Life vs. Collins Foods Limited | Sun Life vs. WT OFFSHORE | Sun Life vs. BW OFFSHORE LTD |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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