Correlation Between TIMES CHINA and Sun Life
Can any of the company-specific risk be diversified away by investing in both TIMES CHINA and Sun Life 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 TIMES CHINA and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TIMES CHINA HLDGS and Sun Life Financial, you can compare the effects of market volatilities on TIMES CHINA and Sun Life 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 TIMES CHINA with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of TIMES CHINA and Sun Life.
Diversification Opportunities for TIMES CHINA and Sun Life
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TIMES and Sun is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding TIMES CHINA HLDGS and Sun Life Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Life Financial and TIMES CHINA 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 TIMES CHINA HLDGS are associated (or correlated) with Sun Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Life Financial has no effect on the direction of TIMES CHINA i.e., TIMES CHINA and Sun Life go up and down completely randomly.
Pair Corralation between TIMES CHINA and Sun Life
Assuming the 90 days horizon TIMES CHINA HLDGS is expected to under-perform the Sun Life. In addition to that, TIMES CHINA is 4.79 times more volatile than Sun Life Financial. It trades about -0.13 of its total potential returns per unit of risk. Sun Life Financial is currently generating about 0.0 per unit of volatility. If you would invest 5,650 in Sun Life Financial on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Sun Life Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
TIMES CHINA HLDGS vs. Sun Life Financial
Performance |
| Timeline |
| TIMES CHINA HLDGS |
| Sun Life Financial |
TIMES CHINA and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TIMES CHINA and Sun Life
The main advantage of trading using opposite TIMES CHINA and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TIMES CHINA position performs unexpectedly, Sun Life 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 Sun Life will offset losses from the drop in Sun Life's long position.| TIMES CHINA vs. Mitsui Chemicals | TIMES CHINA vs. TIANDE CHEMICAL | TIMES CHINA vs. Algonquin Power Utilities | TIMES CHINA vs. KINGBOARD CHEMICAL |
| Sun Life vs. Berkshire Hathaway | Sun Life vs. Zurich Insurance Group | Sun Life vs. American International Group | Sun Life vs. Arch Capital Group |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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