Correlation Between GRENKELEASING and Sun Life
Can any of the company-specific risk be diversified away by investing in both GRENKELEASING 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 GRENKELEASING and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRENKELEASING Dusseldorf and Sun Life Financial, you can compare the effects of market volatilities on GRENKELEASING 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 GRENKELEASING with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRENKELEASING and Sun Life.
Diversification Opportunities for GRENKELEASING and Sun Life
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GRENKELEASING and Sun is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding GRENKELEASING Dusseldorf 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 GRENKELEASING 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 GRENKELEASING Dusseldorf 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 GRENKELEASING i.e., GRENKELEASING and Sun Life go up and down completely randomly.
Pair Corralation between GRENKELEASING and Sun Life
Assuming the 90 days trading horizon GRENKELEASING Dusseldorf is expected to under-perform the Sun Life. In addition to that, GRENKELEASING is 2.16 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 0.07 per unit of volatility. If you would invest 3,932 in Sun Life Financial on October 14, 2024 and sell it today you would earn a total of 1,718 from holding Sun Life Financial or generate 43.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRENKELEASING Dusseldorf vs. Sun Life Financial
Performance |
| Timeline |
| GRENKELEASING Duss |
| Sun Life Financial |
GRENKELEASING and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRENKELEASING and Sun Life
The main advantage of trading using opposite GRENKELEASING and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRENKELEASING 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.| GRENKELEASING vs. T MOBILE US | GRENKELEASING vs. Iridium Communications | GRENKELEASING vs. WillScot Mobile Mini | GRENKELEASING vs. MOLSON RS BEVERAGE |
| Sun Life vs. Global Ship Lease | Sun Life vs. Apollo Investment Corp | Sun Life vs. GRENKELEASING Dusseldorf | Sun Life vs. INTERSHOP Communications Aktiengesellschaft |
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.
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