Correlation Between Sun Life and Endeavour Silver
Can any of the company-specific risk be diversified away by investing in both Sun Life and Endeavour Silver 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 Endeavour Silver 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 Endeavour Silver Corp, you can compare the effects of market volatilities on Sun Life and Endeavour Silver 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 Endeavour Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Endeavour Silver.
Diversification Opportunities for Sun Life and Endeavour Silver
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sun and Endeavour is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Endeavour Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavour Silver Corp 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 Endeavour Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavour Silver Corp has no effect on the direction of Sun Life i.e., Sun Life and Endeavour Silver go up and down completely randomly.
Pair Corralation between Sun Life and Endeavour Silver
Assuming the 90 days trading horizon Sun Life is expected to generate 4.35 times less return on investment than Endeavour Silver. But when comparing it to its historical volatility, Sun Life Financial is 5.15 times less risky than Endeavour Silver. It trades about 0.03 of its potential returns per unit of risk. Endeavour Silver Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 478.00 in Endeavour Silver Corp on September 3, 2024 and sell it today you would earn a total of 96.00 from holding Endeavour Silver Corp or generate 20.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Life Financial vs. Endeavour Silver Corp
Performance |
| Timeline |
| Sun Life Financial |
| Endeavour Silver Corp |
Sun Life and Endeavour Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and Endeavour Silver
The main advantage of trading using opposite Sun Life and Endeavour Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Endeavour Silver 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 Endeavour Silver will offset losses from the drop in Endeavour Silver's long position.| Sun Life vs. Highwood Asset Management | Sun Life vs. Brookfield Asset Management | Sun Life vs. Xtract One Technologies | Sun Life vs. Caribbean Utilities |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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