Correlation Between Upstart Investments and Sun Life
Can any of the company-specific risk be diversified away by investing in both Upstart Investments 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 Upstart Investments and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Upstart Investments and Sun Life Financial, you can compare the effects of market volatilities on Upstart Investments 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 Upstart Investments with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upstart Investments and Sun Life.
Diversification Opportunities for Upstart Investments and Sun Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Upstart and Sun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Upstart Investments 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 Upstart Investments 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 Upstart Investments 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 Upstart Investments i.e., Upstart Investments and Sun Life go up and down completely randomly.
Pair Corralation between Upstart Investments and Sun Life
Assuming the 90 days trading horizon Upstart Investments is expected to under-perform the Sun Life. In addition to that, Upstart Investments is 6.29 times more volatile than Sun Life Financial. It trades about -0.01 of its total potential returns per unit of risk. Sun Life Financial is currently generating about 0.08 per unit of volatility. If you would invest 1,639 in Sun Life Financial on September 12, 2024 and sell it today you would earn a total of 416.00 from holding Sun Life Financial or generate 25.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Upstart Investments vs. Sun Life Financial
Performance |
| Timeline |
| Upstart Investments |
| Sun Life Financial |
Upstart Investments and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Upstart Investments and Sun Life
The main advantage of trading using opposite Upstart Investments and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upstart Investments 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.| Upstart Investments vs. Brompton Lifeco Split | Upstart Investments vs. North American Financial | Upstart Investments vs. Prime Dividend Corp | Upstart Investments vs. Financial 15 Split |
| Sun Life vs. Maple Leaf Foods | Sun Life vs. Upstart Investments | Sun Life vs. Maple Peak Investments | Sun Life vs. 2028 Investment Grade |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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