Correlation Between Sun Life and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both Sun Life and ANTA Sports 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 ANTA Sports 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 ANTA Sports Products, you can compare the effects of market volatilities on Sun Life and ANTA Sports 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 ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and ANTA Sports.
Diversification Opportunities for Sun Life and ANTA Sports
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sun and ANTA is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and ANTA Sports Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA Sports Products 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 ANTA Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA Sports Products has no effect on the direction of Sun Life i.e., Sun Life and ANTA Sports go up and down completely randomly.
Pair Corralation between Sun Life and ANTA Sports
Considering the 90-day investment horizon Sun Life Financial is expected to under-perform the ANTA Sports. But the stock apears to be less risky and, when comparing its historical volatility, Sun Life Financial is 1.12 times less risky than ANTA Sports. The stock trades about -0.07 of its potential returns per unit of risk. The ANTA Sports Products is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 26,530 in ANTA Sports Products on December 2, 2024 and sell it today you would earn a total of 1,643 from holding ANTA Sports Products or generate 6.19% 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. ANTA Sports Products
Performance |
| Timeline |
| Sun Life Financial |
| ANTA Sports Products |
Sun Life and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and ANTA Sports
The main advantage of trading using opposite Sun Life and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, ANTA Sports 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 ANTA Sports will offset losses from the drop in ANTA Sports' long position.| Sun Life vs. Axa Equitable Holdings | ||
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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