Correlation Between Sun Life and Electrovaya Common
Can any of the company-specific risk be diversified away by investing in both Sun Life and Electrovaya Common 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 Electrovaya Common 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 Electrovaya Common Shares, you can compare the effects of market volatilities on Sun Life and Electrovaya Common 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 Electrovaya Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Electrovaya Common.
Diversification Opportunities for Sun Life and Electrovaya Common
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sun and Electrovaya is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Electrovaya Common Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrovaya Common Shares 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 Electrovaya Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrovaya Common Shares has no effect on the direction of Sun Life i.e., Sun Life and Electrovaya Common go up and down completely randomly.
Pair Corralation between Sun Life and Electrovaya Common
Considering the 90-day investment horizon Sun Life Financial is expected to under-perform the Electrovaya Common. But the stock apears to be less risky and, when comparing its historical volatility, Sun Life Financial is 2.89 times less risky than Electrovaya Common. The stock trades about -0.03 of its potential returns per unit of risk. The Electrovaya Common Shares is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 218.00 in Electrovaya Common Shares on December 20, 2024 and sell it today you would earn a total of 54.00 from holding Electrovaya Common Shares or generate 24.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sun Life Financial vs. Electrovaya Common Shares
Performance |
Timeline |
Sun Life Financial |
Electrovaya Common Shares |
Sun Life and Electrovaya Common Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sun Life and Electrovaya Common
The main advantage of trading using opposite Sun Life and Electrovaya Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Electrovaya Common 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 Electrovaya Common will offset losses from the drop in Electrovaya Common'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 |
Electrovaya Common vs. Tower One Wireless | Electrovaya Common vs. ARIA Wireless Systems | Electrovaya Common vs. Lincoln Electric Holdings | Electrovaya Common vs. Boston Properties |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |