Correlation Between Green Panda and Sun Life

Can any of the company-specific risk be diversified away by investing in both Green Panda 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 Green Panda and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Green Panda Capital and Sun Life Financial, you can compare the effects of market volatilities on Green Panda 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 Green Panda with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Panda and Sun Life.

Diversification Opportunities for Green Panda and Sun Life

0.0

Correlation Coefficient

Green Panda  Sun Life

Pay attention - limited upside

The 3 months correlation between Green and Sun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Green Panda Capital 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 Green Panda 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 Green Panda Capital 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 Green Panda i.e., Green Panda and Sun Life go up and down completely randomly.

Pair Corralation between Green Panda and Sun Life

If you would invest  1,978  in Sun Life Financial on December 30, 2024 and sell it today you would earn a total of  57.00  from holding Sun Life Financial or generate 2.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Green Panda Capital  vs.  Sun Life Financial

Green Panda Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Green Panda Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Green Panda is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Sun Life Financial

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sun Life Financial are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, Sun Life is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Green Panda and Sun Life

The main advantage of trading using opposite Green Panda and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Panda 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.

The idea behind Green Panda Capital and Sun Life Financial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.