Correlation Between Sun Life and CINTAS
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By analyzing existing cross correlation between Sun Life Financial and CINTAS P NO, you can compare the effects of market volatilities on Sun Life and CINTAS 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 CINTAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and CINTAS.
Diversification Opportunities for Sun Life and CINTAS
Very good diversification
The 3 months correlation between Sun and CINTAS is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and CINTAS P NO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CINTAS P NO 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 CINTAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CINTAS P NO has no effect on the direction of Sun Life i.e., Sun Life and CINTAS go up and down completely randomly.
Pair Corralation between Sun Life and CINTAS
Considering the 90-day investment horizon Sun Life Financial is expected to generate 0.93 times more return on investment than CINTAS. However, Sun Life Financial is 1.08 times less risky than CINTAS. It trades about 0.51 of its potential returns per unit of risk. CINTAS P NO is currently generating about 0.17 per unit of risk. If you would invest 5,514 in Sun Life Financial on September 3, 2024 and sell it today you would earn a total of 625.00 from holding Sun Life Financial or generate 11.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 35.0% |
| Values | Daily Returns |
Sun Life Financial vs. CINTAS P NO
Performance |
| Timeline |
| Sun Life Financial |
| CINTAS P NO |
Sun Life and CINTAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and CINTAS
The main advantage of trading using opposite Sun Life and CINTAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, CINTAS 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 CINTAS will offset losses from the drop in CINTAS'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 |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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