Correlation Between COPLAND ROAD and Sun Life
Can any of the company-specific risk be diversified away by investing in both COPLAND ROAD 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 COPLAND ROAD and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COPLAND ROAD CAPITAL and Sun Life Financial, you can compare the effects of market volatilities on COPLAND ROAD 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 COPLAND ROAD with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of COPLAND ROAD and Sun Life.
Diversification Opportunities for COPLAND ROAD and Sun Life
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between COPLAND and Sun is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding COPLAND ROAD CAPITAL 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 COPLAND ROAD 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 COPLAND ROAD CAPITAL 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 COPLAND ROAD i.e., COPLAND ROAD and Sun Life go up and down completely randomly.
Pair Corralation between COPLAND ROAD and Sun Life
Assuming the 90 days horizon COPLAND ROAD CAPITAL is expected to generate 3.92 times more return on investment than Sun Life. However, COPLAND ROAD is 3.92 times more volatile than Sun Life Financial. It trades about 0.33 of its potential returns per unit of risk. Sun Life Financial is currently generating about -0.12 per unit of risk. If you would invest 3,316 in COPLAND ROAD CAPITAL on October 30, 2024 and sell it today you would earn a total of 1,774 from holding COPLAND ROAD CAPITAL or generate 53.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COPLAND ROAD CAPITAL vs. Sun Life Financial
Performance |
| Timeline |
| COPLAND ROAD CAPITAL |
| Sun Life Financial |
COPLAND ROAD and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COPLAND ROAD and Sun Life
The main advantage of trading using opposite COPLAND ROAD and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COPLAND ROAD 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.| COPLAND ROAD vs. SOLSTAD OFFSHORE NK | COPLAND ROAD vs. EIDESVIK OFFSHORE NK | COPLAND ROAD vs. Vulcan Materials | COPLAND ROAD vs. Compagnie Plastic Omnium |
| Sun Life vs. GALENA MINING LTD | Sun Life vs. SILICON LABORATOR | Sun Life vs. Warner Music Group | Sun Life vs. Silicon Motion Technology |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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