Correlation Between SunCoke Energy and Unum
Can any of the company-specific risk be diversified away by investing in both SunCoke Energy and Unum 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 SunCoke Energy and Unum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunCoke Energy and Unum Group, you can compare the effects of market volatilities on SunCoke Energy and Unum 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 SunCoke Energy with a short position of Unum. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunCoke Energy and Unum.
Diversification Opportunities for SunCoke Energy and Unum
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SunCoke and Unum is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SunCoke Energy and Unum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unum Group and SunCoke Energy 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 SunCoke Energy are associated (or correlated) with Unum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unum Group has no effect on the direction of SunCoke Energy i.e., SunCoke Energy and Unum go up and down completely randomly.
Pair Corralation between SunCoke Energy and Unum
Considering the 90-day investment horizon SunCoke Energy is expected to under-perform the Unum. In addition to that, SunCoke Energy is 2.38 times more volatile than Unum Group. It trades about -0.34 of its total potential returns per unit of risk. Unum Group is currently generating about 0.39 per unit of volatility. If you would invest 7,262 in Unum Group on November 1, 2024 and sell it today you would earn a total of 441.00 from holding Unum Group or generate 6.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunCoke Energy vs. Unum Group
Performance |
| Timeline |
| SunCoke Energy |
| Unum Group |
SunCoke Energy and Unum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunCoke Energy and Unum
The main advantage of trading using opposite SunCoke Energy and Unum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunCoke Energy position performs unexpectedly, Unum 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 Unum will offset losses from the drop in Unum's long position.| SunCoke Energy vs. Warrior Met Coal | SunCoke Energy vs. Alpha Metallurgical Resources | SunCoke Energy vs. American Resources Corp | SunCoke Energy vs. Ramaco Resources |
| Unum vs. Prudential Financial | Unum vs. MetLife | Unum vs. Jackson Financial | Unum vs. Manulife Financial Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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