Correlation Between Sun Life and GRUPO ECOENER
Can any of the company-specific risk be diversified away by investing in both Sun Life and GRUPO ECOENER 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 GRUPO ECOENER 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 GRUPO ECOENER EO, you can compare the effects of market volatilities on Sun Life and GRUPO ECOENER 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 GRUPO ECOENER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and GRUPO ECOENER.
Diversification Opportunities for Sun Life and GRUPO ECOENER
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sun and GRUPO is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and GRUPO ECOENER EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRUPO ECOENER EO 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 GRUPO ECOENER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRUPO ECOENER EO has no effect on the direction of Sun Life i.e., Sun Life and GRUPO ECOENER go up and down completely randomly.
Pair Corralation between Sun Life and GRUPO ECOENER
Assuming the 90 days horizon Sun Life Financial is expected to under-perform the GRUPO ECOENER. But the stock apears to be less risky and, when comparing its historical volatility, Sun Life Financial is 1.16 times less risky than GRUPO ECOENER. The stock trades about -0.2 of its potential returns per unit of risk. The GRUPO ECOENER EO is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 420.00 in GRUPO ECOENER EO on September 24, 2024 and sell it today you would earn a total of 5.00 from holding GRUPO ECOENER EO or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Life Financial vs. GRUPO ECOENER EO
Performance |
| Timeline |
| Sun Life Financial |
| GRUPO ECOENER EO |
Sun Life and GRUPO ECOENER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and GRUPO ECOENER
The main advantage of trading using opposite Sun Life and GRUPO ECOENER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, GRUPO ECOENER 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 GRUPO ECOENER will offset losses from the drop in GRUPO ECOENER's long position.| Sun Life vs. Berkshire Hathaway | Sun Life vs. Berkshire Hathaway | Sun Life vs. Zurich Insurance Group | Sun Life vs. American International Group |
| GRUPO ECOENER vs. CARSALESCOM | GRUPO ECOENER vs. FAST RETAIL ADR | GRUPO ECOENER vs. Tradegate AG Wertpapierhandelsbank | GRUPO ECOENER vs. MARKET VECTR RETAIL |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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