Correlation Between Winshear Gold and Sun Life
Can any of the company-specific risk be diversified away by investing in both Winshear Gold 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 Winshear Gold and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winshear Gold Corp and Sun Life Financial, you can compare the effects of market volatilities on Winshear Gold 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 Winshear Gold with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winshear Gold and Sun Life.
Diversification Opportunities for Winshear Gold and Sun Life
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Winshear and Sun is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Winshear Gold Corp 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 Winshear Gold 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 Winshear Gold Corp 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 Winshear Gold i.e., Winshear Gold and Sun Life go up and down completely randomly.
Pair Corralation between Winshear Gold and Sun Life
Assuming the 90 days trading horizon Winshear Gold Corp is expected to generate 7.22 times more return on investment than Sun Life. However, Winshear Gold is 7.22 times more volatile than Sun Life Financial. It trades about 0.04 of its potential returns per unit of risk. Sun Life Financial is currently generating about -0.04 per unit of risk. If you would invest 15.00 in Winshear Gold Corp on August 26, 2024 and sell it today you would earn a total of 1.00 from holding Winshear Gold Corp or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winshear Gold Corp vs. Sun Life Financial
Performance |
| Timeline |
| Winshear Gold Corp |
| Sun Life Financial |
Winshear Gold and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winshear Gold and Sun Life
The main advantage of trading using opposite Winshear Gold and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winshear Gold 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.| Winshear Gold vs. Data Communications Management | Winshear Gold vs. Element Fleet Management | Winshear Gold vs. AGF Management Limited | Winshear Gold vs. InPlay Oil Corp |
| Sun Life vs. Forstrong Global Income | Sun Life vs. BMO Aggregate Bond | Sun Life vs. Terreno Resources Corp | Sun Life vs. iShares Canadian HYBrid |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |