Correlation Between Mako Mining and Sun Life
Can any of the company-specific risk be diversified away by investing in both Mako Mining 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 Mako Mining and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mako Mining Corp and Sun Life Financial, you can compare the effects of market volatilities on Mako Mining 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 Mako Mining with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mako Mining and Sun Life.
Diversification Opportunities for Mako Mining and Sun Life
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mako and Sun is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp 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 Mako Mining 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 Mako Mining Corp 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 Mako Mining i.e., Mako Mining and Sun Life go up and down completely randomly.
Pair Corralation between Mako Mining and Sun Life
Assuming the 90 days horizon Mako Mining Corp is expected to generate 4.32 times more return on investment than Sun Life. However, Mako Mining is 4.32 times more volatile than Sun Life Financial. It trades about 0.07 of its potential returns per unit of risk. Sun Life Financial is currently generating about 0.06 per unit of risk. If you would invest 161.00 in Mako Mining Corp on September 2, 2024 and sell it today you would earn a total of 143.00 from holding Mako Mining Corp or generate 88.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mako Mining Corp vs. Sun Life Financial
Performance |
| Timeline |
| Mako Mining Corp |
| Sun Life Financial |
Mako Mining and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mako Mining and Sun Life
The main advantage of trading using opposite Mako Mining and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mako Mining 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.| Mako Mining vs. First Majestic Silver | Mako Mining vs. Ivanhoe Energy | Mako Mining vs. Orezone Gold Corp | Mako Mining vs. Faraday Copper Corp |
| Sun Life vs. Endeavour Silver Corp | Sun Life vs. Vizsla Silver Corp | Sun Life vs. Capstone Mining Corp | Sun Life vs. Globex Mining Enterprises |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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