Correlation Between Sun Life and Sun Life
Can any of the company-specific risk be diversified away by investing in both Sun Life 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 Sun Life and Sun Life 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 Sun Life Financial, you can compare the effects of market volatilities on Sun Life 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 Sun Life with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Sun Life.
Diversification Opportunities for Sun Life and Sun Life
Pay attention - limited upside
The 3 months correlation between Sun and Sun is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial 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 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 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 Sun Life i.e., Sun Life and Sun Life go up and down completely randomly.
Pair Corralation between Sun Life and Sun Life
Assuming the 90 days trading horizon Sun Life Financial is expected to generate 0.99 times more return on investment than Sun Life. However, Sun Life Financial is 1.01 times less risky than Sun Life. It trades about 0.35 of its potential returns per unit of risk. Sun Life Financial is currently generating about -0.01 per unit of risk. If you would invest 7,832 in Sun Life Financial on August 30, 2024 and sell it today you would earn a total of 713.00 from holding Sun Life Financial or generate 9.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sun Life Financial vs. Sun Life Financial
Performance |
| Timeline |
| Sun Life Financial |
| Sun Life Financial |
Sun Life and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and Sun Life
The main advantage of trading using opposite Sun Life and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life 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.| Sun Life vs. Manulife Financial Corp | Sun Life vs. Great West Lifeco | Sun Life vs. National Bank of | Sun Life vs. Canadian Imperial Bank |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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