Correlation Between Maple Peak and Sun Life
Can any of the company-specific risk be diversified away by investing in both Maple Peak and Sun Life 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 Maple Peak and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Peak Investments and Sun Life Financial, you can compare the effects of market volatilities on Maple Peak and Sun Life 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 Maple Peak with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Peak and Sun Life.
Diversification Opportunities for Maple Peak and Sun Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Maple and Sun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maple Peak Investments and Sun Life Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Life Financial and Maple Peak 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 Maple Peak Investments are associated (or correlated) with Sun Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Life Financial has no effect on the direction of Maple Peak i.e., Maple Peak and Sun Life go up and down completely randomly.
Pair Corralation between Maple Peak and Sun Life
Assuming the 90 days horizon Maple Peak Investments is expected to generate 15.76 times more return on investment than Sun Life. However, Maple Peak is 15.76 times more volatile than Sun Life Financial. It trades about 0.05 of its potential returns per unit of risk. Sun Life Financial is currently generating about 0.08 per unit of risk. If you would invest 1.00 in Maple Peak Investments on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Maple Peak Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Maple Peak Investments vs. Sun Life Financial
Performance |
| Timeline |
| Maple Peak Investments |
| Sun Life Financial |
Maple Peak and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Peak and Sun Life
The main advantage of trading using opposite Maple Peak and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Peak position performs unexpectedly, Sun Life 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 Sun Life will offset losses from the drop in Sun Life's long position.| Maple Peak vs. Algoma Steel Group | Maple Peak vs. Tree Island Steel | Maple Peak vs. Rocky Mountain Liquor | Maple Peak vs. Rogers Communications |
| Sun Life vs. Maple Leaf Foods | Sun Life vs. Upstart Investments | Sun Life vs. Maple Peak Investments | Sun Life vs. 2028 Investment Grade |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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