Correlation Between SUN LIFE and Greek Organization

Can any of the company-specific risk be diversified away by investing in both SUN LIFE and Greek Organization 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 SUN LIFE and Greek Organization into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SUN LIFE FINANCIAL and Greek Organization of, you can compare the effects of market volatilities on SUN LIFE and Greek Organization 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 SUN LIFE with a short position of Greek Organization. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUN LIFE and Greek Organization.

Diversification Opportunities for SUN LIFE and Greek Organization

-0.81

Correlation Coefficient

SUN LIFE  Greek Organization

Pay attention - limited upside

The 3 months correlation between SUN and Greek is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding SUN LIFE FINANCIAL and Greek Organization of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greek Organization and SUN LIFE 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 SUN LIFE FINANCIAL are associated (or correlated) with Greek Organization. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greek Organization has no effect on the direction of SUN LIFE i.e., SUN LIFE and Greek Organization go up and down completely randomly.

Pair Corralation between SUN LIFE and Greek Organization

Assuming the 90 days trading horizon SUN LIFE FINANCIAL is expected to under-perform the Greek Organization. But the stock apears to be less risky and, when comparing its historical volatility, SUN LIFE FINANCIAL is 1.16 times less risky than Greek Organization. The stock trades about -0.1 of its potential returns per unit of risk. The Greek Organization of is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,530  in Greek Organization of on December 20, 2024 and sell it today you would earn a total of  196.00  from holding Greek Organization of or generate 12.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

SUN LIFE FINANCIAL  vs.  Greek Organization of

SUN LIFE FINANCIAL

Risk-Adjusted Performance

Very Weak

Over the last 90 days SUN LIFE FINANCIAL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Greek Organization

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Greek Organization of are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Greek Organization reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SUN LIFE and Greek Organization

The main advantage of trading using opposite SUN LIFE and Greek Organization positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUN LIFE position performs unexpectedly, Greek Organization 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 Greek Organization will offset losses from the drop in Greek Organization's long position.

The idea behind SUN LIFE FINANCIAL and Greek Organization of 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..