Correlation Between Sun Life and Green Panda

Can any of the company-specific risk be diversified away by investing in both Sun Life and Green Panda 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 Green Panda 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 Green Panda Capital, you can compare the effects of market volatilities on Sun Life and Green Panda 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 Green Panda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Green Panda.

Diversification Opportunities for Sun Life and Green Panda

0.0

Correlation Coefficient

Sun Life  Green Panda

Pay attention - limited upside

The 3 months correlation between Sun and Green is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Green Panda Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Panda Capital 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 Green Panda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Panda Capital has no effect on the direction of Sun Life i.e., Sun Life and Green Panda go up and down completely randomly.

Pair Corralation between Sun Life and Green Panda

If you would invest  1,989  in Sun Life Financial on November 29, 2024 and sell it today you would earn a total of  73.00  from holding Sun Life Financial or generate 3.67% return on investment over 90 days.

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

Sun Life Financial  vs.  Green Panda Capital

Sun Life Financial

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sun Life Financial are ranked lower than 6 (%) 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.

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 latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sun Life and Green Panda

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

The idea behind Sun Life Financial and Green Panda Capital 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.