Correlation Between Sun Life and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Sun Life and Vienna Insurance 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 Vienna Insurance 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 Vienna Insurance Group, you can compare the effects of market volatilities on Sun Life and Vienna Insurance 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 Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Vienna Insurance.
Diversification Opportunities for Sun Life and Vienna Insurance
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sun and Vienna is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance 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 Vienna Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vienna Insurance has no effect on the direction of Sun Life i.e., Sun Life and Vienna Insurance go up and down completely randomly.
Pair Corralation between Sun Life and Vienna Insurance
Assuming the 90 days horizon Sun Life Financial is expected to generate 0.89 times more return on investment than Vienna Insurance. However, Sun Life Financial is 1.12 times less risky than Vienna Insurance. It trades about 0.07 of its potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.06 per unit of risk. If you would invest 3,949 in Sun Life Financial on October 11, 2024 and sell it today you would earn a total of 1,701 from holding Sun Life Financial or generate 43.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Life Financial vs. Vienna Insurance Group
Performance |
| Timeline |
| Sun Life Financial |
| Vienna Insurance |
Sun Life and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and Vienna Insurance
The main advantage of trading using opposite Sun Life and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Vienna Insurance 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 Vienna Insurance will offset losses from the drop in Vienna Insurance's long position.| Sun Life vs. FUYO GENERAL LEASE | Sun Life vs. JAPAN TOBACCO UNSPADR12 | Sun Life vs. ALBIS LEASING AG | Sun Life vs. ADDUS HOMECARE |
| Vienna Insurance vs. Tyson Foods | Vienna Insurance vs. United Natural Foods | Vienna Insurance vs. PLANT VEDA FOODS | Vienna Insurance vs. UNIDOC HEALTH P |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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