Correlation Between Sun Life and Allied Gaming
Can any of the company-specific risk be diversified away by investing in both Sun Life and Allied Gaming 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 Allied Gaming 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 Allied Gaming Entertainment, you can compare the effects of market volatilities on Sun Life and Allied Gaming 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 Allied Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Allied Gaming.
Diversification Opportunities for Sun Life and Allied Gaming
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sun and Allied is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Allied Gaming Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Gaming Entert 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 Allied Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Gaming Entert has no effect on the direction of Sun Life i.e., Sun Life and Allied Gaming go up and down completely randomly.
Pair Corralation between Sun Life and Allied Gaming
If you would invest 0.02 in Allied Gaming Entertainment on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Allied Gaming Entertainment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Sun Life Financial vs. Allied Gaming Entertainment
Performance |
| Timeline |
| Sun Life Financial |
| Allied Gaming Entert |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sun Life and Allied Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and Allied Gaming
The main advantage of trading using opposite Sun Life and Allied Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Allied Gaming 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 Allied Gaming will offset losses from the drop in Allied Gaming's long position.| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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