Correlation Between Sun Life and Plutonian Acquisition
Can any of the company-specific risk be diversified away by investing in both Sun Life and Plutonian Acquisition 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 Plutonian Acquisition 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 Plutonian Acquisition Corp, you can compare the effects of market volatilities on Sun Life and Plutonian Acquisition 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 Plutonian Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Plutonian Acquisition.
Diversification Opportunities for Sun Life and Plutonian Acquisition
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sun and Plutonian is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Plutonian Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plutonian Acquisition 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 Plutonian Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plutonian Acquisition has no effect on the direction of Sun Life i.e., Sun Life and Plutonian Acquisition go up and down completely randomly.
Pair Corralation between Sun Life and Plutonian Acquisition
If you would invest 243.00 in Plutonian Acquisition Corp on October 30, 2024 and sell it today you would earn a total of 0.00 from holding Plutonian Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Sun Life Financial vs. Plutonian Acquisition Corp
Performance |
| Timeline |
| Sun Life Financial |
| Plutonian Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sun Life and Plutonian Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and Plutonian Acquisition
The main advantage of trading using opposite Sun Life and Plutonian Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Plutonian Acquisition 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 Plutonian Acquisition will offset losses from the drop in Plutonian Acquisition'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 |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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