Correlation Between Sun Life and Bâloise Holding
Can any of the company-specific risk be diversified away by investing in both Sun Life and Bâloise Holding 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 Bâloise Holding 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 Bloise Holding AG, you can compare the effects of market volatilities on Sun Life and Bâloise Holding 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 Bâloise Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Bâloise Holding.
Diversification Opportunities for Sun Life and Bâloise Holding
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sun and Bâloise is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Bloise Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloise Holding AG 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 Bâloise Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloise Holding AG has no effect on the direction of Sun Life i.e., Sun Life and Bâloise Holding go up and down completely randomly.
Pair Corralation between Sun Life and Bâloise Holding
If you would invest 5,696 in Sun Life Financial on August 27, 2024 and sell it today you would earn a total of 422.00 from holding Sun Life Financial or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Life Financial vs. Bloise Holding AG
Performance |
| Timeline |
| Sun Life Financial |
| Bloise Holding AG |
Sun Life and Bâloise Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and Bâloise Holding
The main advantage of trading using opposite Sun Life and Bâloise Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Bâloise Holding 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 Bâloise Holding will offset losses from the drop in Bâloise Holding'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 |
| Bâloise Holding vs. Berkshire Hathaway | Bâloise Holding vs. American International Group | Bâloise Holding vs. Arch Capital Group | Bâloise Holding vs. Sun Life Financial |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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