Correlation Between Sun Life and Helios Fairfax
Can any of the company-specific risk be diversified away by investing in both Sun Life and Helios Fairfax 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 Helios Fairfax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Life Non and Helios Fairfax Partners, you can compare the effects of market volatilities on Sun Life and Helios Fairfax 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 Helios Fairfax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Helios Fairfax.
Diversification Opportunities for Sun Life and Helios Fairfax
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sun and Helios is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Non and Helios Fairfax Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helios Fairfax Partners 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 Non are associated (or correlated) with Helios Fairfax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helios Fairfax Partners has no effect on the direction of Sun Life i.e., Sun Life and Helios Fairfax go up and down completely randomly.
Pair Corralation between Sun Life and Helios Fairfax
Assuming the 90 days trading horizon Sun Life is expected to generate 1.53 times less return on investment than Helios Fairfax. But when comparing it to its historical volatility, Sun Life Non is 3.58 times less risky than Helios Fairfax. It trades about 0.08 of its potential returns per unit of risk. Helios Fairfax Partners is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 245.00 in Helios Fairfax Partners on September 3, 2024 and sell it today you would earn a total of 35.00 from holding Helios Fairfax Partners or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Life Non vs. Helios Fairfax Partners
Performance |
| Timeline |
| Sun Life Non |
| Helios Fairfax Partners |
Sun Life and Helios Fairfax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and Helios Fairfax
The main advantage of trading using opposite Sun Life and Helios Fairfax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Helios Fairfax 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 Helios Fairfax will offset losses from the drop in Helios Fairfax's long position.| Sun Life vs. Reliq Health Technologies | Sun Life vs. A W FOOD | Sun Life vs. Guru Organic Energy | Sun Life vs. Andlauer Healthcare Gr |
| Helios Fairfax vs. Computer Modelling Group | Helios Fairfax vs. Questor Technology | Helios Fairfax vs. Medical Facilities | Helios Fairfax vs. Richelieu Hardware |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |