Correlation Between SUN LIFE and Lery Seafood

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SUN LIFE and Lery Seafood 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 Lery Seafood 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 Lery Seafood Group, you can compare the effects of market volatilities on SUN LIFE and Lery Seafood 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 Lery Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUN LIFE and Lery Seafood.

Diversification Opportunities for SUN LIFE and Lery Seafood

0.15
  Correlation Coefficient

Average diversification

The 3 months correlation between SUN and Lery is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding SUN LIFE FINANCIAL and Lery Seafood Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lery Seafood Group 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 Lery Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lery Seafood Group has no effect on the direction of SUN LIFE i.e., SUN LIFE and Lery Seafood go up and down completely randomly.

Pair Corralation between SUN LIFE and Lery Seafood

Assuming the 90 days trading horizon SUN LIFE FINANCIAL is expected to generate 0.38 times more return on investment than Lery Seafood. However, SUN LIFE FINANCIAL is 2.64 times less risky than Lery Seafood. It trades about -0.31 of its potential returns per unit of risk. Lery Seafood Group is currently generating about -0.18 per unit of risk. If you would invest  5,850  in SUN LIFE FINANCIAL on October 9, 2024 and sell it today you would lose (200.00) from holding SUN LIFE FINANCIAL or give up 3.42% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

SUN LIFE FINANCIAL  vs.  Lery Seafood Group

 Performance 
       Timeline  
SUN LIFE FINANCIAL 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in SUN LIFE FINANCIAL are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, SUN LIFE may actually be approaching a critical reversion point that can send shares even higher in February 2025.
Lery Seafood Group 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Lery Seafood Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Lery Seafood is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

SUN LIFE and Lery Seafood Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SUN LIFE and Lery Seafood

The main advantage of trading using opposite SUN LIFE and Lery Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUN LIFE position performs unexpectedly, Lery Seafood 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 Lery Seafood will offset losses from the drop in Lery Seafood's long position.
The idea behind SUN LIFE FINANCIAL and Lery Seafood Group 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

Other Complementary Tools

Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity