Correlation Between Bellring Brands and Sun Life
Can any of the company-specific risk be diversified away by investing in both Bellring Brands 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 Bellring Brands and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bellring Brands LLC and Sun Life Financial, you can compare the effects of market volatilities on Bellring Brands 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 Bellring Brands with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bellring Brands and Sun Life.
Diversification Opportunities for Bellring Brands and Sun Life
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bellring and Sun is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bellring Brands LLC 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 Bellring Brands 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 Bellring Brands LLC 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 Bellring Brands i.e., Bellring Brands and Sun Life go up and down completely randomly.
Pair Corralation between Bellring Brands and Sun Life
Given the investment horizon of 90 days Bellring Brands LLC is expected to under-perform the Sun Life. But the stock apears to be less risky and, when comparing its historical volatility, Bellring Brands LLC is 1.15 times less risky than Sun Life. The stock trades about -0.23 of its potential returns per unit of risk. The Sun Life Financial is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 5,500 in Sun Life Financial on November 27, 2024 and sell it today you would lose (250.00) from holding Sun Life Financial or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bellring Brands LLC vs. Sun Life Financial
Performance |
| Timeline |
| Bellring Brands LLC |
| Sun Life Financial |
Bellring Brands and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bellring Brands and Sun Life
The main advantage of trading using opposite Bellring Brands and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bellring Brands 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.| Bellring Brands vs. Treehouse Foods | Bellring Brands vs. Pilgrims Pride Corp | Bellring Brands vs. Ingredion Incorporated | Bellring Brands vs. JM Smucker |
| Sun Life vs. Data Modul AG | Sun Life vs. DATANG INTL POW | Sun Life vs. CN DATANG C | Sun Life vs. Lendlease Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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