Correlation Between Lery Seafood and SUN LIFE
Can any of the company-specific risk be diversified away by investing in both Lery Seafood 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 Lery Seafood and SUN LIFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lery Seafood Group and SUN LIFE FINANCIAL, you can compare the effects of market volatilities on Lery Seafood 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 Lery Seafood with a short position of SUN LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lery Seafood and SUN LIFE.
Diversification Opportunities for Lery Seafood and SUN LIFE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lery and SUN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lery Seafood Group 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 Lery Seafood 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 Lery Seafood Group 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 Lery Seafood i.e., Lery Seafood and SUN LIFE go up and down completely randomly.
Pair Corralation between Lery Seafood and SUN LIFE
Assuming the 90 days horizon Lery Seafood Group is expected to generate 1.56 times more return on investment than SUN LIFE. However, Lery Seafood is 1.56 times more volatile than SUN LIFE FINANCIAL. It trades about 0.37 of its potential returns per unit of risk. SUN LIFE FINANCIAL is currently generating about -0.05 per unit of risk. If you would invest 406.00 in Lery Seafood Group on October 25, 2024 and sell it today you would earn a total of 37.00 from holding Lery Seafood Group or generate 9.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lery Seafood Group vs. SUN LIFE FINANCIAL
Performance |
| Timeline |
| Lery Seafood Group |
| SUN LIFE FINANCIAL |
Lery Seafood and SUN LIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lery Seafood and SUN LIFE
The main advantage of trading using opposite Lery Seafood and SUN LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lery Seafood 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.| Lery Seafood vs. General Mills | Lery Seafood vs. Danone SA | Lery Seafood vs. Hormel Foods | Lery Seafood vs. Kellogg Company |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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