Correlation Between Sun Life and Minor International
Can any of the company-specific risk be diversified away by investing in both Sun Life and Minor International 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 Minor International 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 Minor International Public, you can compare the effects of market volatilities on Sun Life and Minor International 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 Minor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Minor International.
Diversification Opportunities for Sun Life and Minor International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sun and Minor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Minor International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minor International 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 Minor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minor International has no effect on the direction of Sun Life i.e., Sun Life and Minor International go up and down completely randomly.
Pair Corralation between Sun Life and Minor International
Considering the 90-day investment horizon Sun Life Financial is expected to generate 12.73 times more return on investment than Minor International. However, Sun Life is 12.73 times more volatile than Minor International Public. It trades about 0.06 of its potential returns per unit of risk. Minor International Public is currently generating about 0.08 per unit of risk. If you would invest 4,078 in Sun Life Financial on December 4, 2024 and sell it today you would earn a total of 1,396 from holding Sun Life Financial or generate 34.24% 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. Minor International Public
Performance |
| Timeline |
| Sun Life Financial |
| Minor International |
Sun Life and Minor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and Minor International
The main advantage of trading using opposite Sun Life and Minor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Minor International 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 Minor International will offset losses from the drop in Minor International'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 |
| Minor International vs. Integrated Drilling Equipment | Minor International vs. Quaker Chemical | Minor International vs. Axalta Coating Systems | Minor International vs. Air Products and |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |