Correlation Between Bip Investment and Sun Life
Can any of the company-specific risk be diversified away by investing in both Bip Investment 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 Bip Investment and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bip Investment Corp and Sun Life Financial, you can compare the effects of market volatilities on Bip Investment 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 Bip Investment with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bip Investment and Sun Life.
Diversification Opportunities for Bip Investment and Sun Life
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bip and Sun is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bip Investment Corp 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 Bip Investment 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 Bip Investment Corp 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 Bip Investment i.e., Bip Investment and Sun Life go up and down completely randomly.
Pair Corralation between Bip Investment and Sun Life
Assuming the 90 days trading horizon Bip Investment Corp is expected to generate 0.94 times more return on investment than Sun Life. However, Bip Investment Corp is 1.06 times less risky than Sun Life. It trades about 0.07 of its potential returns per unit of risk. Sun Life Financial is currently generating about 0.06 per unit of risk. If you would invest 2,088 in Bip Investment Corp on September 12, 2024 and sell it today you would earn a total of 572.00 from holding Bip Investment Corp or generate 27.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Bip Investment Corp vs. Sun Life Financial
Performance |
| Timeline |
| Bip Investment Corp |
| Sun Life Financial |
Bip Investment and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bip Investment and Sun Life
The main advantage of trading using opposite Bip Investment and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bip Investment 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.| Bip Investment vs. Brookfield Infrastructure Partners | Bip Investment vs. Brookfield Infrastructure Partners | Bip Investment vs. iShares Canadian HYBrid | Bip Investment vs. Solar Alliance Energy |
| Sun Life vs. Partners Value Investments | Sun Life vs. Earth Alive Clean | Sun Life vs. Canaf Investments | Sun Life vs. Electra Battery Materials |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |