Correlation Between BrightStar Information and Sun Life
Can any of the company-specific risk be diversified away by investing in both BrightStar Information 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 BrightStar Information and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BrightStar Information Technology and Sun Life Financial, you can compare the effects of market volatilities on BrightStar Information 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 BrightStar Information with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of BrightStar Information and Sun Life.
Diversification Opportunities for BrightStar Information and Sun Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BrightStar and Sun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BrightStar Information Technol 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 BrightStar Information 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 BrightStar Information Technology 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 BrightStar Information i.e., BrightStar Information and Sun Life go up and down completely randomly.
Pair Corralation between BrightStar Information and Sun Life
If you would invest 5,144 in Sun Life Financial on September 3, 2024 and sell it today you would earn a total of 995.00 from holding Sun Life Financial or generate 19.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BrightStar Information Technol vs. Sun Life Financial
Performance |
| Timeline |
| BrightStar Information |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sun Life Financial |
BrightStar Information and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BrightStar Information and Sun Life
The main advantage of trading using opposite BrightStar Information and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BrightStar Information 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.| BrightStar Information vs. KeyCorp | BrightStar Information vs. Montauk Renewables | BrightStar Information vs. MGIC Investment Corp | BrightStar Information vs. BCB Bancorp |
| Sun Life vs. Axa Equitable Holdings | Sun Life vs. American International Group | Sun Life vs. Arch Capital Group | Sun Life vs. Old Republic International |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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