Correlation Between Sun Life and MEDCAW INVESTMENTS
Can any of the company-specific risk be diversified away by investing in both Sun Life and MEDCAW INVESTMENTS 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 MEDCAW INVESTMENTS 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 MEDCAW INVESTMENTS LS 01, you can compare the effects of market volatilities on Sun Life and MEDCAW INVESTMENTS 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 MEDCAW INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and MEDCAW INVESTMENTS.
Diversification Opportunities for Sun Life and MEDCAW INVESTMENTS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sun and MEDCAW is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and MEDCAW INVESTMENTS LS 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDCAW 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 MEDCAW INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDCAW INVESTMENTS has no effect on the direction of Sun Life i.e., Sun Life and MEDCAW INVESTMENTS go up and down completely randomly.
Pair Corralation between Sun Life and MEDCAW INVESTMENTS
If you would invest 4.05 in MEDCAW INVESTMENTS LS 01 on October 30, 2024 and sell it today you would earn a total of 0.00 from holding MEDCAW INVESTMENTS LS 01 or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Sun Life Financial vs. MEDCAW INVESTMENTS LS 01
Performance |
| Timeline |
| Sun Life Financial |
| MEDCAW INVESTMENTS |
Sun Life and MEDCAW INVESTMENTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and MEDCAW INVESTMENTS
The main advantage of trading using opposite Sun Life and MEDCAW INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, MEDCAW INVESTMENTS 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 MEDCAW INVESTMENTS will offset losses from the drop in MEDCAW INVESTMENTS's long position.| Sun Life vs. GALENA MINING LTD | Sun Life vs. SILICON LABORATOR | Sun Life vs. Warner Music Group | Sun Life vs. Silicon Motion Technology |
| MEDCAW INVESTMENTS vs. Blackstone Group | MEDCAW INVESTMENTS vs. The Bank of | MEDCAW INVESTMENTS vs. Ameriprise Financial | MEDCAW INVESTMENTS vs. State Street |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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