Correlation Between Sun Life and Deutsche Pfandbriefbank
Can any of the company-specific risk be diversified away by investing in both Sun Life and Deutsche Pfandbriefbank 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 Deutsche Pfandbriefbank 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 Deutsche Pfandbriefbank AG, you can compare the effects of market volatilities on Sun Life and Deutsche Pfandbriefbank 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 Deutsche Pfandbriefbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Deutsche Pfandbriefbank.
Diversification Opportunities for Sun Life and Deutsche Pfandbriefbank
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sun and Deutsche is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Deutsche Pfandbriefbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Pfandbriefbank 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 Deutsche Pfandbriefbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Pfandbriefbank has no effect on the direction of Sun Life i.e., Sun Life and Deutsche Pfandbriefbank go up and down completely randomly.
Pair Corralation between Sun Life and Deutsche Pfandbriefbank
Assuming the 90 days horizon Sun Life Financial is expected to generate 0.44 times more return on investment than Deutsche Pfandbriefbank. However, Sun Life Financial is 2.28 times less risky than Deutsche Pfandbriefbank. It trades about 0.14 of its potential returns per unit of risk. Deutsche Pfandbriefbank AG is currently generating about 0.05 per unit of risk. If you would invest 4,849 in Sun Life Financial on November 2, 2024 and sell it today you would earn a total of 751.00 from holding Sun Life Financial or generate 15.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.04% |
| Values | Daily Returns |
Sun Life Financial vs. Deutsche Pfandbriefbank AG
Performance |
| Timeline |
| Sun Life Financial |
| Deutsche Pfandbriefbank |
Sun Life and Deutsche Pfandbriefbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and Deutsche Pfandbriefbank
The main advantage of trading using opposite Sun Life and Deutsche Pfandbriefbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Deutsche Pfandbriefbank 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 Deutsche Pfandbriefbank will offset losses from the drop in Deutsche Pfandbriefbank's long position.| Sun Life vs. Virtus Investment Partners | Sun Life vs. Apollo Investment Corp | Sun Life vs. ECHO INVESTMENT ZY | Sun Life vs. United Rentals |
| Deutsche Pfandbriefbank vs. PRECISION DRILLING P | Deutsche Pfandbriefbank vs. Carsales | Deutsche Pfandbriefbank vs. GEELY AUTOMOBILE | Deutsche Pfandbriefbank vs. CARSALESCOM |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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