Correlation Between Sun Life and Trump Media
Can any of the company-specific risk be diversified away by investing in both Sun Life and Trump Media 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 Trump Media 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 Trump Media Technology, you can compare the effects of market volatilities on Sun Life and Trump Media 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 Trump Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Trump Media.
Diversification Opportunities for Sun Life and Trump Media
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sun and Trump is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Trump Media Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trump Media Technology 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 Trump Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trump Media Technology has no effect on the direction of Sun Life i.e., Sun Life and Trump Media go up and down completely randomly.
Pair Corralation between Sun Life and Trump Media
Considering the 90-day investment horizon Sun Life Financial is expected to generate 0.09 times more return on investment than Trump Media. However, Sun Life Financial is 11.72 times less risky than Trump Media. It trades about 0.32 of its potential returns per unit of risk. Trump Media Technology is currently generating about -0.02 per unit of risk. If you would invest 5,640 in Sun Life Financial on August 26, 2024 and sell it today you would earn a total of 478.00 from holding Sun Life Financial or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Life Financial vs. Trump Media Technology
Performance |
| Timeline |
| Sun Life Financial |
| Trump Media Technology |
Sun Life and Trump Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and Trump Media
The main advantage of trading using opposite Sun Life and Trump Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Trump Media 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 Trump Media will offset losses from the drop in Trump Media'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 |
| Trump Media vs. Zillow Group Class | Trump Media vs. Kanzhun Ltd ADR | Trump Media vs. Outbrain | Trump Media vs. TuanChe ADR |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |