Correlation Between Sun Life and Bonus BioGroup
Can any of the company-specific risk be diversified away by investing in both Sun Life and Bonus BioGroup 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 Bonus BioGroup 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 Bonus BioGroup, you can compare the effects of market volatilities on Sun Life and Bonus BioGroup 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 Bonus BioGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Bonus BioGroup.
Diversification Opportunities for Sun Life and Bonus BioGroup
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sun and Bonus is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Bonus BioGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonus BioGroup 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 Bonus BioGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonus BioGroup has no effect on the direction of Sun Life i.e., Sun Life and Bonus BioGroup go up and down completely randomly.
Pair Corralation between Sun Life and Bonus BioGroup
Considering the 90-day investment horizon Sun Life is expected to generate 118.67 times less return on investment than Bonus BioGroup. But when comparing it to its historical volatility, Sun Life Financial is 88.36 times less risky than Bonus BioGroup. It trades about 0.06 of its potential returns per unit of risk. Bonus BioGroup is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4.00 in Bonus BioGroup on September 12, 2024 and sell it today you would lose (2.00) from holding Bonus BioGroup or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Sun Life Financial vs. Bonus BioGroup
Performance |
| Timeline |
| Sun Life Financial |
| Bonus BioGroup |
Sun Life and Bonus BioGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and Bonus BioGroup
The main advantage of trading using opposite Sun Life and Bonus BioGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Bonus BioGroup 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 Bonus BioGroup will offset losses from the drop in Bonus BioGroup'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 |
| Bonus BioGroup vs. Biotron Limited | Bonus BioGroup vs. biOasis Technologies | Bonus BioGroup vs. Covalon Technologies | Bonus BioGroup vs. Mosaic Immunoengineering |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |