Correlation Between SPTSX Dividend and Sun Life
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By analyzing existing cross correlation between SPTSX Dividend Aristocrats and Sun Life Financial, you can compare the effects of market volatilities on SPTSX Dividend 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 SPTSX Dividend with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPTSX Dividend and Sun Life.
Diversification Opportunities for SPTSX Dividend and Sun Life
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SPTSX and Sun is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding SPTSX Dividend Aristocrats 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 SPTSX Dividend 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 SPTSX Dividend Aristocrats 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 SPTSX Dividend i.e., SPTSX Dividend and Sun Life go up and down completely randomly.
Pair Corralation between SPTSX Dividend and Sun Life
Assuming the 90 days trading horizon SPTSX Dividend Aristocrats is expected to generate 0.64 times more return on investment than Sun Life. However, SPTSX Dividend Aristocrats is 1.57 times less risky than Sun Life. It trades about 0.2 of its potential returns per unit of risk. Sun Life Financial is currently generating about -0.12 per unit of risk. If you would invest 36,690 in SPTSX Dividend Aristocrats on August 31, 2024 and sell it today you would earn a total of 755.00 from holding SPTSX Dividend Aristocrats or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPTSX Dividend Aristocrats vs. Sun Life Financial
Performance |
| Timeline |
SPTSX Dividend and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
SPTSX Dividend Aristocrats
Pair trading matchups for SPTSX Dividend
Sun Life Financial
Pair trading matchups for Sun Life
Pair Trading with SPTSX Dividend and Sun Life
The main advantage of trading using opposite SPTSX Dividend and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPTSX Dividend 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.| SPTSX Dividend vs. Canadian Imperial Bank | SPTSX Dividend vs. Renoworks Software | SPTSX Dividend vs. CI Financial Corp | SPTSX Dividend vs. CVW CleanTech |
| Sun Life vs. Element Fleet Management | Sun Life vs. North American Financial | Sun Life vs. Champion Iron | Sun Life vs. iA Financial |
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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