Correlation Between Sun Life and Logility
Can any of the company-specific risk be diversified away by investing in both Sun Life and Logility 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 Logility 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 Logility, you can compare the effects of market volatilities on Sun Life and Logility 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 Logility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Logility.
Diversification Opportunities for Sun Life and Logility
Modest diversification
The 3 months correlation between Sun and Logility is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Logility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logility 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 Logility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logility has no effect on the direction of Sun Life i.e., Sun Life and Logility go up and down completely randomly.
Pair Corralation between Sun Life and Logility
Considering the 90-day investment horizon Sun Life Financial is expected to generate 0.23 times more return on investment than Logility. However, Sun Life Financial is 4.44 times less risky than Logility. It trades about 0.21 of its potential returns per unit of risk. Logility is currently generating about -0.03 per unit of risk. If you would invest 5,899 in Sun Life Financial on September 12, 2024 and sell it today you would earn a total of 208.00 from holding Sun Life Financial or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sun Life Financial vs. Logility
Performance |
| Timeline |
| Sun Life Financial |
| Logility |
Sun Life and Logility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and Logility
The main advantage of trading using opposite Sun Life and Logility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Logility 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 Logility will offset losses from the drop in Logility'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 |
| Logility vs. Unity Software | Logility vs. Daily Journal Corp | Logility vs. C3 Ai Inc | Logility vs. Blackline |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |