Correlation Between Helios Fairfax and Sun Life
Can any of the company-specific risk be diversified away by investing in both Helios Fairfax 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 Helios Fairfax and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Helios Fairfax Partners and Sun Life Non, you can compare the effects of market volatilities on Helios Fairfax 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 Helios Fairfax with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Helios Fairfax and Sun Life.
Diversification Opportunities for Helios Fairfax and Sun Life
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Helios and Sun is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Helios Fairfax Partners and Sun Life Non in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Life Non and Helios Fairfax 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 Helios Fairfax Partners 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 Non has no effect on the direction of Helios Fairfax i.e., Helios Fairfax and Sun Life go up and down completely randomly.
Pair Corralation between Helios Fairfax and Sun Life
Assuming the 90 days trading horizon Helios Fairfax is expected to generate 1.05 times less return on investment than Sun Life. In addition to that, Helios Fairfax is 3.77 times more volatile than Sun Life Non. It trades about 0.02 of its total potential returns per unit of risk. Sun Life Non is currently generating about 0.06 per unit of volatility. If you would invest 1,239 in Sun Life Non on September 3, 2024 and sell it today you would earn a total of 393.00 from holding Sun Life Non or generate 31.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Helios Fairfax Partners vs. Sun Life Non
Performance |
| Timeline |
| Helios Fairfax Partners |
| Sun Life Non |
Helios Fairfax and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Helios Fairfax and Sun Life
The main advantage of trading using opposite Helios Fairfax and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Helios Fairfax 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.| Helios Fairfax vs. Computer Modelling Group | Helios Fairfax vs. Questor Technology | Helios Fairfax vs. Medical Facilities | Helios Fairfax vs. Richelieu Hardware |
| Sun Life vs. Reliq Health Technologies | Sun Life vs. A W FOOD | Sun Life vs. Guru Organic Energy | Sun Life vs. Andlauer Healthcare Gr |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |