Correlation Between Advent Wireless and Sun Life
Can any of the company-specific risk be diversified away by investing in both Advent Wireless 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 Advent Wireless and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advent Wireless and Sun Life Non, you can compare the effects of market volatilities on Advent Wireless 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 Advent Wireless with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Wireless and Sun Life.
Diversification Opportunities for Advent Wireless and Sun Life
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advent and Sun is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Advent Wireless and Sun Life Non in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Life Non and Advent Wireless 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 Advent Wireless 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 Non has no effect on the direction of Advent Wireless i.e., Advent Wireless and Sun Life go up and down completely randomly.
Pair Corralation between Advent Wireless and Sun Life
Assuming the 90 days horizon Advent Wireless is expected to generate 14.53 times more return on investment than Sun Life. However, Advent Wireless is 14.53 times more volatile than Sun Life Non. It trades about 0.04 of its potential returns per unit of risk. Sun Life Non is currently generating about 0.29 per unit of risk. If you would invest 65.00 in Advent Wireless on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Advent Wireless or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Advent Wireless vs. Sun Life Non
Performance |
| Timeline |
| Advent Wireless |
| Sun Life Non |
Advent Wireless and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advent Wireless and Sun Life
The main advantage of trading using opposite Advent Wireless and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Wireless 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.| Advent Wireless vs. Sparx Technology | Advent Wireless vs. Bragg Gaming Group | Advent Wireless vs. Constellation Software | Advent Wireless vs. 2028 Investment Grade |
| Sun Life vs. Sun Life Financial | Sun Life vs. Solar Alliance Energy | Sun Life vs. EcoSynthetix | Sun Life vs. Tarku Resources |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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