Correlation Between SUN LIFE and Lery Seafood
Can any of the company-specific risk be diversified away by investing in both SUN LIFE and Lery Seafood 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 Lery Seafood 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 Lery Seafood Group, you can compare the effects of market volatilities on SUN LIFE and Lery Seafood 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 Lery Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUN LIFE and Lery Seafood.
Diversification Opportunities for SUN LIFE and Lery Seafood
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SUN and Lery is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SUN LIFE FINANCIAL and Lery Seafood Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lery Seafood Group 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 Lery Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lery Seafood Group has no effect on the direction of SUN LIFE i.e., SUN LIFE and Lery Seafood go up and down completely randomly.
Pair Corralation between SUN LIFE and Lery Seafood
Assuming the 90 days trading horizon SUN LIFE FINANCIAL is expected to under-perform the Lery Seafood. But the stock apears to be less risky and, when comparing its historical volatility, SUN LIFE FINANCIAL is 1.56 times less risky than Lery Seafood. The stock trades about -0.05 of its potential returns per unit of risk. The Lery Seafood Group is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 406.00 in Lery Seafood Group on October 25, 2024 and sell it today you would earn a total of 37.00 from holding Lery Seafood Group or generate 9.11% 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. Lery Seafood Group
Performance |
| Timeline |
| SUN LIFE FINANCIAL |
| Lery Seafood Group |
SUN LIFE and Lery Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUN LIFE and Lery Seafood
The main advantage of trading using opposite SUN LIFE and Lery Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUN LIFE position performs unexpectedly, Lery Seafood 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 Lery Seafood will offset losses from the drop in Lery Seafood's long position.The idea behind SUN LIFE FINANCIAL and Lery Seafood Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Lery Seafood vs. General Mills | Lery Seafood vs. Danone SA | Lery Seafood vs. Hormel Foods | Lery Seafood vs. Kellogg Company |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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