Correlation Between Sun Life and Anterix
Can any of the company-specific risk be diversified away by investing in both Sun Life and Anterix 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 Anterix 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 Anterix, you can compare the effects of market volatilities on Sun Life and Anterix 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 Anterix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Anterix.
Diversification Opportunities for Sun Life and Anterix
Pay attention - limited upside
The 3 months correlation between Sun and Anterix is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix 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 Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of Sun Life i.e., Sun Life and Anterix go up and down completely randomly.
Pair Corralation between Sun Life and Anterix
Considering the 90-day investment horizon Sun Life Financial is expected to under-perform the Anterix. But the stock apears to be less risky and, when comparing its historical volatility, Sun Life Financial is 3.42 times less risky than Anterix. The stock trades about -0.02 of its potential returns per unit of risk. The Anterix is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,074 in Anterix on December 27, 2024 and sell it today you would earn a total of 663.00 from holding Anterix or generate 21.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sun Life Financial vs. Anterix
Performance |
Timeline |
Sun Life Financial |
Anterix |
Sun Life and Anterix Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sun Life and Anterix
The main advantage of trading using opposite Sun Life and Anterix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Anterix 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 Anterix will offset losses from the drop in Anterix's long position.Sun Life vs. Axa Equitable Holdings | Sun Life vs. American International Group | Sun Life vs. Arch Capital Group | Sun Life vs. Old Republic International |
Anterix vs. Shenandoah Telecommunications Co | Anterix vs. Liberty Broadband Corp | Anterix vs. Ooma Inc | Anterix vs. IDT Corporation |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Bonds Directory Find actively traded corporate debentures issued by US companies |