Correlation Between FUYO GENERAL and Sun Life
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL 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 FUYO GENERAL and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUYO GENERAL LEASE and Sun Life Financial, you can compare the effects of market volatilities on FUYO GENERAL 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 FUYO GENERAL with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and Sun Life.
Diversification Opportunities for FUYO GENERAL and Sun Life
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FUYO and Sun is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE 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 FUYO GENERAL 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 FUYO GENERAL LEASE 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 FUYO GENERAL i.e., FUYO GENERAL and Sun Life go up and down completely randomly.
Pair Corralation between FUYO GENERAL and Sun Life
Assuming the 90 days horizon FUYO GENERAL is expected to generate 2.3 times less return on investment than Sun Life. In addition to that, FUYO GENERAL is 1.34 times more volatile than Sun Life Financial. It trades about 0.02 of its total potential returns per unit of risk. Sun Life Financial is currently generating about 0.06 per unit of volatility. If you would invest 4,054 in Sun Life Financial on October 27, 2024 and sell it today you would earn a total of 1,596 from holding Sun Life Financial or generate 39.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. Sun Life Financial
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| Sun Life Financial |
FUYO GENERAL and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and Sun Life
The main advantage of trading using opposite FUYO GENERAL and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL 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.| FUYO GENERAL vs. Molina Healthcare | FUYO GENERAL vs. BROADWIND ENRGY | FUYO GENERAL vs. Acadia Healthcare | FUYO GENERAL vs. COPLAND ROAD CAPITAL |
| Sun Life vs. CAL MAINE FOODS | Sun Life vs. Genertec Universal Medical | Sun Life vs. PEPTONIC MEDICAL | Sun Life vs. Apollo Medical Holdings |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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