Correlation Between Sun Life and Himalaya Shipping
Can any of the company-specific risk be diversified away by investing in both Sun Life and Himalaya Shipping 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 Himalaya Shipping 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 Himalaya Shipping, you can compare the effects of market volatilities on Sun Life and Himalaya Shipping 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 Himalaya Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Himalaya Shipping.
Diversification Opportunities for Sun Life and Himalaya Shipping
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sun and Himalaya is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Himalaya Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Himalaya Shipping 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 Himalaya Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Himalaya Shipping has no effect on the direction of Sun Life i.e., Sun Life and Himalaya Shipping go up and down completely randomly.
Pair Corralation between Sun Life and Himalaya Shipping
Considering the 90-day investment horizon Sun Life Financial is expected to generate 0.36 times more return on investment than Himalaya Shipping. However, Sun Life Financial is 2.76 times less risky than Himalaya Shipping. It trades about 0.06 of its potential returns per unit of risk. Himalaya Shipping is currently generating about 0.01 per unit of risk. If you would invest 4,712 in Sun Life Financial on October 3, 2024 and sell it today you would earn a total of 1,222 from holding Sun Life Financial or generate 25.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sun Life Financial vs. Himalaya Shipping
Performance |
Timeline |
Sun Life Financial |
Himalaya Shipping |
Sun Life and Himalaya Shipping Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sun Life and Himalaya Shipping
The main advantage of trading using opposite Sun Life and Himalaya Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Himalaya Shipping 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 Himalaya Shipping will offset losses from the drop in Himalaya Shipping'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 |
Himalaya Shipping vs. Oceanpal | Himalaya Shipping vs. Safe Bulkers | Himalaya Shipping vs. Safe Bulkers | Himalaya Shipping vs. Safe Bulkers |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
Stocks Directory Find actively traded stocks across global markets | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |