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
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Winshear and Sun is 0.62. 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 is expected to generate 4.41 times less return on investment than Sun Life. In addition to that, Winshear Gold is 8.71 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 0.53 per unit of volatility. If you would invest 7,645 in Sun Life Financial on September 1, 2024 and sell it today you would earn a total of 972.00 from holding Sun Life Financial or generate 12.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| 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. Ocumetics Technology Corp | Winshear Gold vs. Bragg Gaming Group | Winshear Gold vs. NextSource Materials | Winshear Gold vs. Highwood Asset Management |
| Sun Life vs. Manulife Financial Corp | Sun Life vs. Great West Lifeco | Sun Life vs. National Bank of | Sun Life vs. Canadian Imperial Bank |
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.
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