Correlation Between SUN LIFE and Chuangs China
Can any of the company-specific risk be diversified away by investing in both SUN LIFE and Chuangs China 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 SUN LIFE and Chuangs China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SUN LIFE FINANCIAL and Chuangs China Investments, you can compare the effects of market volatilities on SUN LIFE and Chuangs China 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 SUN LIFE with a short position of Chuangs China. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUN LIFE and Chuangs China.
Diversification Opportunities for SUN LIFE and Chuangs China
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SUN and Chuangs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SUN LIFE FINANCIAL and Chuangs China Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chuangs China Investments and SUN LIFE 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 SUN LIFE FINANCIAL are associated (or correlated) with Chuangs China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chuangs China Investments has no effect on the direction of SUN LIFE i.e., SUN LIFE and Chuangs China go up and down completely randomly.
Pair Corralation between SUN LIFE and Chuangs China
If you would invest 1.00 in Chuangs China Investments on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Chuangs China Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SUN LIFE FINANCIAL vs. Chuangs China Investments
Performance |
| Timeline |
| SUN LIFE FINANCIAL |
| Chuangs China Investments |
SUN LIFE and Chuangs China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUN LIFE and Chuangs China
The main advantage of trading using opposite SUN LIFE and Chuangs China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUN LIFE position performs unexpectedly, Chuangs China 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 Chuangs China will offset losses from the drop in Chuangs China's long position.| SUN LIFE vs. Arrow Electronics | SUN LIFE vs. LG Electronics | SUN LIFE vs. INVITATION HOMES DL | SUN LIFE vs. STMicroelectronics NV |
| Chuangs China vs. Sun Hung Kai | Chuangs China vs. China Overseas Land | Chuangs China vs. CHINA VANKE TD | Chuangs China vs. Longfor Group 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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