Correlation Between PT Barito and Sun Life
Can any of the company-specific risk be diversified away by investing in both PT Barito 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 PT Barito and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Barito Pacific and Sun Life Financial, you can compare the effects of market volatilities on PT Barito 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 PT Barito with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Barito and Sun Life.
Diversification Opportunities for PT Barito and Sun Life
Pay attention - limited upside
The 3 months correlation between OB8 and Sun is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding PT Barito Pacific 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 PT Barito 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 PT Barito Pacific 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 PT Barito i.e., PT Barito and Sun Life go up and down completely randomly.
Pair Corralation between PT Barito and Sun Life
Assuming the 90 days horizon PT Barito Pacific is expected to under-perform the Sun Life. In addition to that, PT Barito is 6.89 times more volatile than Sun Life Financial. It trades about -0.04 of its total potential returns per unit of risk. Sun Life Financial is currently generating about 0.26 per unit of volatility. If you would invest 5,100 in Sun Life Financial on August 25, 2024 and sell it today you would earn a total of 750.00 from holding Sun Life Financial or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Barito Pacific vs. Sun Life Financial
Performance |
| Timeline |
| PT Barito Pacific |
| Sun Life Financial |
PT Barito and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Barito and Sun Life
The main advantage of trading using opposite PT Barito and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Barito 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.| PT Barito vs. QBE Insurance Group | PT Barito vs. 24SEVENOFFICE GROUP AB | PT Barito vs. CENTURIA OFFICE REIT | PT Barito vs. REVO INSURANCE SPA |
| Sun Life vs. Berkshire Hathaway | Sun Life vs. Zurich Insurance Group | Sun Life vs. Superior Plus Corp | Sun Life vs. NMI Holdings |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |