Correlation Between ENERGY and Sun Life
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By analyzing existing cross correlation between ENERGY TRANSFER OPER and Sun Life Financial, you can compare the effects of market volatilities on ENERGY 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 ENERGY with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENERGY and Sun Life.
Diversification Opportunities for ENERGY and Sun Life
Significant diversification
The 3 months correlation between ENERGY and Sun is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding ENERGY TRANSFER OPER 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 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 ENERGY TRANSFER OPER 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 ENERGY i.e., ENERGY and Sun Life go up and down completely randomly.
Pair Corralation between ENERGY and Sun Life
Assuming the 90 days trading horizon ENERGY is expected to generate 21.31 times less return on investment than Sun Life. But when comparing it to its historical volatility, ENERGY TRANSFER OPER is 1.96 times less risky than Sun Life. It trades about 0.0 of its potential returns per unit of risk. Sun Life Financial is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,597 in Sun Life Financial on October 22, 2024 and sell it today you would earn a total of 1,294 from holding Sun Life Financial or generate 28.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.98% |
| Values | Daily Returns |
ENERGY TRANSFER OPER vs. Sun Life Financial
Performance |
| Timeline |
| ENERGY TRANSFER OPER |
| Sun Life Financial |
ENERGY and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENERGY and Sun Life
The main advantage of trading using opposite ENERGY and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENERGY 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.| ENERGY vs. Kaiser Aluminum | ENERGY vs. East Africa Metals | ENERGY vs. Coty Inc | ENERGY vs. Rambler Metals and |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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