Correlation Between Sun Life and Bridgemarq Real
Can any of the company-specific risk be diversified away by investing in both Sun Life and Bridgemarq Real 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 Sun Life and Bridgemarq Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Life Financial and Bridgemarq Real Estate, you can compare the effects of market volatilities on Sun Life and Bridgemarq Real 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 Sun Life with a short position of Bridgemarq Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Bridgemarq Real.
Diversification Opportunities for Sun Life and Bridgemarq Real
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sun and Bridgemarq is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Bridgemarq Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgemarq Real Estate and Sun Life 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 Sun Life Financial are associated (or correlated) with Bridgemarq Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgemarq Real Estate has no effect on the direction of Sun Life i.e., Sun Life and Bridgemarq Real go up and down completely randomly.
Pair Corralation between Sun Life and Bridgemarq Real
Assuming the 90 days trading horizon Sun Life Financial is expected to under-perform the Bridgemarq Real. But the preferred stock apears to be less risky and, when comparing its historical volatility, Sun Life Financial is 1.95 times less risky than Bridgemarq Real. The preferred stock trades about -0.13 of its potential returns per unit of risk. The Bridgemarq Real Estate is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,484 in Bridgemarq Real Estate on August 23, 2024 and sell it today you would earn a total of 37.00 from holding Bridgemarq Real Estate or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Life Financial vs. Bridgemarq Real Estate
Performance |
| Timeline |
| Sun Life Financial |
| Bridgemarq Real Estate |
Sun Life and Bridgemarq Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and Bridgemarq Real
The main advantage of trading using opposite Sun Life and Bridgemarq Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Bridgemarq Real 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 Bridgemarq Real will offset losses from the drop in Bridgemarq Real's long position.| Sun Life vs. Sun Life Non | Sun Life vs. Sun Life Financial | Sun Life vs. Forstrong Global Income | Sun Life vs. BMO Aggregate Bond |
| Bridgemarq Real vs. Inovalis Real Estate | Bridgemarq Real vs. Atrium Mortgage Investment | Bridgemarq Real vs. Slate Office REIT | Bridgemarq Real vs. Timbercreek Financial Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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