Correlation Between Sun Life and GILEAD
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By analyzing existing cross correlation between Sun Life Financial and GILEAD SCIENCES INC, you can compare the effects of market volatilities on Sun Life and GILEAD 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 GILEAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and GILEAD.
Diversification Opportunities for Sun Life and GILEAD
Excellent diversification
The 3 months correlation between Sun and GILEAD is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and GILEAD SCIENCES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GILEAD SCIENCES INC 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 GILEAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GILEAD SCIENCES INC has no effect on the direction of Sun Life i.e., Sun Life and GILEAD go up and down completely randomly.
Pair Corralation between Sun Life and GILEAD
Considering the 90-day investment horizon Sun Life is expected to generate 85.54 times less return on investment than GILEAD. But when comparing it to its historical volatility, Sun Life Financial is 82.84 times less risky than GILEAD. It trades about 0.08 of its potential returns per unit of risk. GILEAD SCIENCES INC is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 10,781 in GILEAD SCIENCES INC on September 4, 2024 and sell it today you would lose (672.00) from holding GILEAD SCIENCES INC or give up 6.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 79.19% |
| Values | Daily Returns |
Sun Life Financial vs. GILEAD SCIENCES INC
Performance |
| Timeline |
| Sun Life Financial |
| GILEAD SCIENCES INC |
Sun Life and GILEAD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and GILEAD
The main advantage of trading using opposite Sun Life and GILEAD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, GILEAD 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 GILEAD will offset losses from the drop in GILEAD'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 |
| GILEAD vs. Ecovyst | GILEAD vs. National Vision Holdings | GILEAD vs. Luxfer Holdings PLC | GILEAD vs. CVR Partners LP |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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