Correlation Between Freedom Internet and Sun Life
Can any of the company-specific risk be diversified away by investing in both Freedom Internet 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 Freedom Internet and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freedom Internet Group and Sun Life Financial, you can compare the effects of market volatilities on Freedom Internet 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 Freedom Internet with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Internet and Sun Life.
Diversification Opportunities for Freedom Internet and Sun Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Freedom and Sun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Internet Group 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 Freedom Internet 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 Freedom Internet Group 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 Freedom Internet i.e., Freedom Internet and Sun Life go up and down completely randomly.
Pair Corralation between Freedom Internet and Sun Life
If you would invest 5,899 in Sun Life Financial on September 12, 2024 and sell it today you would earn a total of 207.00 from holding Sun Life Financial or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Freedom Internet Group vs. Sun Life Financial
Performance |
| Timeline |
| Freedom Internet |
| Sun Life Financial |
Freedom Internet and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Internet and Sun Life
The main advantage of trading using opposite Freedom Internet and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Internet 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.| Freedom Internet vs. Visa Class A | Freedom Internet vs. Mastercard | Freedom Internet vs. American Express | Freedom Internet vs. PayPal Holdings |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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