Correlation Between NeuPath Health and Sun Life
Can any of the company-specific risk be diversified away by investing in both NeuPath Health 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 NeuPath Health and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NeuPath Health and Sun Life Financial, you can compare the effects of market volatilities on NeuPath Health 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 NeuPath Health with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of NeuPath Health and Sun Life.
Diversification Opportunities for NeuPath Health and Sun Life
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NeuPath and Sun is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding NeuPath Health 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 NeuPath Health 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 NeuPath Health 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 NeuPath Health i.e., NeuPath Health and Sun Life go up and down completely randomly.
Pair Corralation between NeuPath Health and Sun Life
Assuming the 90 days trading horizon NeuPath Health is expected to generate 6.98 times more return on investment than Sun Life. However, NeuPath Health is 6.98 times more volatile than Sun Life Financial. It trades about 0.04 of its potential returns per unit of risk. Sun Life Financial is currently generating about 0.07 per unit of risk. If you would invest 15.00 in NeuPath Health on September 14, 2024 and sell it today you would earn a total of 4.00 from holding NeuPath Health or generate 26.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
NeuPath Health vs. Sun Life Financial
Performance |
| Timeline |
| NeuPath Health |
| Sun Life Financial |
NeuPath Health and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NeuPath Health and Sun Life
The main advantage of trading using opposite NeuPath Health and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NeuPath Health 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.| NeuPath Health vs. Extendicare | NeuPath Health vs. Sienna Senior Living | NeuPath Health vs. Rogers Sugar | NeuPath Health vs. Chemtrade Logistics Income |
| Sun Life vs. Canlan Ice Sports | Sun Life vs. Precision Drilling | Sun Life vs. Nova Leap Health | Sun Life vs. NeuPath Health |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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