Correlation Between Fast Radius and Sun Life
Can any of the company-specific risk be diversified away by investing in both Fast Radius 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 Fast Radius and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fast Radius and Sun Life Financial, you can compare the effects of market volatilities on Fast Radius 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 Fast Radius with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fast Radius and Sun Life.
Diversification Opportunities for Fast Radius and Sun Life
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fast and Sun is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Fast Radius 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 Fast Radius 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 Fast Radius 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 Fast Radius i.e., Fast Radius and Sun Life go up and down completely randomly.
Pair Corralation between Fast Radius and Sun Life
If you would invest 5,192 in Sun Life Financial on August 27, 2024 and sell it today you would earn a total of 926.00 from holding Sun Life Financial or generate 17.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.53% |
| Values | Daily Returns |
Fast Radius vs. Sun Life Financial
Performance |
| Timeline |
| Fast Radius |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sun Life Financial |
Fast Radius and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fast Radius and Sun Life
The main advantage of trading using opposite Fast Radius and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Radius 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.| Fast Radius vs. Sun Life Financial | Fast Radius vs. NETGEAR | Fast Radius vs. MGIC Investment Corp | Fast Radius vs. Reservoir Media |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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