Correlation Between Ryman Hospitality and Sun Life
Can any of the company-specific risk be diversified away by investing in both Ryman Hospitality 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 Ryman Hospitality and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ryman Hospitality Properties and Sun Life Financial, you can compare the effects of market volatilities on Ryman Hospitality 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 Ryman Hospitality with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ryman Hospitality and Sun Life.
Diversification Opportunities for Ryman Hospitality and Sun Life
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ryman and Sun is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ryman Hospitality Properties 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 Ryman Hospitality 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 Ryman Hospitality Properties 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 Ryman Hospitality i.e., Ryman Hospitality and Sun Life go up and down completely randomly.
Pair Corralation between Ryman Hospitality and Sun Life
Considering the 90-day investment horizon Ryman Hospitality Properties is expected to generate 1.47 times more return on investment than Sun Life. However, Ryman Hospitality is 1.47 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 8,204 in Ryman Hospitality Properties on September 4, 2024 and sell it today you would earn a total of 3,551 from holding Ryman Hospitality Properties or generate 43.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ryman Hospitality Properties vs. Sun Life Financial
Performance |
| Timeline |
| Ryman Hospitality |
| Sun Life Financial |
Ryman Hospitality and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ryman Hospitality and Sun Life
The main advantage of trading using opposite Ryman Hospitality and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ryman Hospitality 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.| Ryman Hospitality vs. RLJ Lodging Trust | Ryman Hospitality vs. Pebblebrook Hotel Trust | Ryman Hospitality vs. Xenia Hotels Resorts | Ryman Hospitality vs. Sunstone Hotel Investors |
| Sun Life vs. Axa Equitable Holdings | Sun Life vs. American International Group | Sun Life vs. Arch Capital Group | Sun Life vs. Old Republic International |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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