Correlation Between Sun Life and Alpha One
Can any of the company-specific risk be diversified away by investing in both Sun Life and Alpha One 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 Alpha One 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 Alpha One, you can compare the effects of market volatilities on Sun Life and Alpha One 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 Alpha One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Alpha One.
Diversification Opportunities for Sun Life and Alpha One
Pay attention - limited upside
The 3 months correlation between Sun and Alpha is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Alpha One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha One 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 Alpha One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha One has no effect on the direction of Sun Life i.e., Sun Life and Alpha One go up and down completely randomly.
Pair Corralation between Sun Life and Alpha One
If you would invest 5,514 in Sun Life Financial on September 3, 2024 and sell it today you would earn a total of 625.00 from holding Sun Life Financial or generate 11.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Sun Life Financial vs. Alpha One
Performance |
| Timeline |
| Sun Life Financial |
| Alpha One |
Sun Life and Alpha One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and Alpha One
The main advantage of trading using opposite Sun Life and Alpha One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Alpha One 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 Alpha One will offset losses from the drop in Alpha One'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 |
| Alpha One vs. Manaris Corp | Alpha One vs. Green Planet Bio | Alpha One vs. Continental Beverage Brands | Alpha One vs. Opus Magnum Ameris |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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