Correlation Between CVW CleanTech and Sun Life
Can any of the company-specific risk be diversified away by investing in both CVW CleanTech 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 CVW CleanTech and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVW CleanTech and Sun Life Financial, you can compare the effects of market volatilities on CVW CleanTech 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 CVW CleanTech with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVW CleanTech and Sun Life.
Diversification Opportunities for CVW CleanTech and Sun Life
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between CVW and Sun is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding CVW CleanTech 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 CVW CleanTech 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 CVW CleanTech 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 CVW CleanTech i.e., CVW CleanTech and Sun Life go up and down completely randomly.
Pair Corralation between CVW CleanTech and Sun Life
Assuming the 90 days horizon CVW CleanTech is expected to generate 6.89 times more return on investment than Sun Life. However, CVW CleanTech is 6.89 times more volatile than Sun Life Financial. It trades about 0.03 of its potential returns per unit of risk. Sun Life Financial is currently generating about 0.07 per unit of risk. If you would invest 68.00 in CVW CleanTech on September 2, 2024 and sell it today you would lose (7.00) from holding CVW CleanTech or give up 10.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVW CleanTech vs. Sun Life Financial
Performance |
| Timeline |
| CVW CleanTech |
| Sun Life Financial |
CVW CleanTech and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVW CleanTech and Sun Life
The main advantage of trading using opposite CVW CleanTech and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVW CleanTech 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.| CVW CleanTech vs. Highway Holdings Limited | CVW CleanTech vs. Esperion Therapeutics | CVW CleanTech vs. Merit Medical Systems | CVW CleanTech vs. Cementos Pacasmayo SAA |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |