Correlation Between Sun Life and Boxed
Can any of the company-specific risk be diversified away by investing in both Sun Life and Boxed 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 Boxed 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 Boxed Inc, you can compare the effects of market volatilities on Sun Life and Boxed 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 Boxed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Boxed.
Diversification Opportunities for Sun Life and Boxed
Pay attention - limited upside
The 3 months correlation between Sun and Boxed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Boxed Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boxed Inc 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 Boxed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boxed Inc has no effect on the direction of Sun Life i.e., Sun Life and Boxed go up and down completely randomly.
Pair Corralation between Sun Life and Boxed
If you would invest 4,641 in Sun Life Financial on September 1, 2024 and sell it today you would earn a total of 1,498 from holding Sun Life Financial or generate 32.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sun Life Financial vs. Boxed Inc
Performance |
| Timeline |
| Sun Life Financial |
| Boxed Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sun Life and Boxed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and Boxed
The main advantage of trading using opposite Sun Life and Boxed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Boxed 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 Boxed will offset losses from the drop in Boxed's long position.| Sun Life vs. Hartford Financial Services | Sun Life vs. Goosehead Insurance | Sun Life vs. International General Insurance | Sun Life vs. Enstar Group Limited |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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