Correlation Between Sun Life and Pyramidion Technology

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

Diversification Opportunities for Sun Life and Pyramidion Technology

-0.33

Correlation Coefficient

Sun Life  Pyramidion Technology

Very good diversification

The 3 months correlation between Sun and Pyramidion is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Pyramidion Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyramidion Technology 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 Pyramidion Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyramidion Technology has no effect on the direction of Sun Life i.e., Sun Life and Pyramidion Technology go up and down completely randomly.

Pair Corralation between Sun Life and Pyramidion Technology

Considering the 90-day investment horizon Sun Life is expected to generate 31.25 times less return on investment than Pyramidion Technology. But when comparing it to its historical volatility, Sun Life Financial is 45.23 times less risky than Pyramidion Technology. It trades about 0.07 of its potential returns per unit of risk. Pyramidion Technology Group is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  2.90  in Pyramidion Technology Group on September 20, 2024 and sell it today you would lose (2.87) from holding Pyramidion Technology Group or give up 98.97% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Sun Life Financial  vs.  Pyramidion Technology Group

Sun Life Financial

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sun Life Financial are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable essential indicators, Sun Life is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pyramidion Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pyramidion Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Sun Life and Pyramidion Technology

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

The idea behind Sun Life Financial and Pyramidion Technology 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .