Correlation Between Sun Life and Chester Mining
Can any of the company-specific risk be diversified away by investing in both Sun Life and Chester Mining 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 Chester Mining 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 Chester Mining, you can compare the effects of market volatilities on Sun Life and Chester Mining 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 Chester Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Chester Mining.
Diversification Opportunities for Sun Life and Chester Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sun and Chester is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Chester Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chester Mining 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 Chester Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chester Mining has no effect on the direction of Sun Life i.e., Sun Life and Chester Mining go up and down completely randomly.
Pair Corralation between Sun Life and Chester Mining
If you would invest 4,301 in Sun Life Financial on September 3, 2024 and sell it today you would earn a total of 1,869 from holding Sun Life Financial or generate 43.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Life Financial vs. Chester Mining
Performance |
| Timeline |
| Sun Life Financial |
| Chester Mining |
Sun Life and Chester Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and Chester Mining
The main advantage of trading using opposite Sun Life and Chester Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Chester Mining 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 Chester Mining will offset losses from the drop in Chester Mining'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 |
| Chester Mining vs. Electrovaya Common Shares | Chester Mining vs. SFL Corporation | Chester Mining vs. Beyond Meat | Chester Mining vs. Marfrig Global Foods |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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