Correlation Between Sun Life and NORFOLK
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By analyzing existing cross correlation between Sun Life Financial and NORFOLK SOUTHN P, you can compare the effects of market volatilities on Sun Life and NORFOLK 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 NORFOLK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and NORFOLK.
Diversification Opportunities for Sun Life and NORFOLK
Good diversification
The 3 months correlation between Sun and NORFOLK is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and NORFOLK SOUTHN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORFOLK SOUTHN P 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 NORFOLK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORFOLK SOUTHN P has no effect on the direction of Sun Life i.e., Sun Life and NORFOLK go up and down completely randomly.
Pair Corralation between Sun Life and NORFOLK
Considering the 90-day investment horizon Sun Life Financial is expected to generate 4.71 times more return on investment than NORFOLK. However, Sun Life is 4.71 times more volatile than NORFOLK SOUTHN P. It trades about 0.11 of its potential returns per unit of risk. NORFOLK SOUTHN P is currently generating about -0.11 per unit of risk. If you would invest 5,617 in Sun Life Financial on September 24, 2024 and sell it today you would earn a total of 275.00 from holding Sun Life Financial or generate 4.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Sun Life Financial vs. NORFOLK SOUTHN P
Performance |
Timeline |
Sun Life Financial |
NORFOLK SOUTHN P |
Sun Life and NORFOLK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sun Life and NORFOLK
The main advantage of trading using opposite Sun Life and NORFOLK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, NORFOLK 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 NORFOLK will offset losses from the drop in NORFOLK's long position.Sun Life vs. Axa Equitable Holdings | Sun Life vs. American International Group | Sun Life vs. Old Republic International | Sun Life vs. Hartford Financial Services |
NORFOLK vs. Sun Life Financial | NORFOLK vs. Pekin Life Insurance | NORFOLK vs. Direct Line Insurance | NORFOLK vs. Sabre Insurance Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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