Correlation Between Sun Life and Assicurazioni Generali
Can any of the company-specific risk be diversified away by investing in both Sun Life and Assicurazioni Generali 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 Assicurazioni Generali 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 Assicurazioni Generali SpA, you can compare the effects of market volatilities on Sun Life and Assicurazioni Generali 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 Assicurazioni Generali. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Assicurazioni Generali.
Diversification Opportunities for Sun Life and Assicurazioni Generali
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sun and Assicurazioni is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Assicurazioni Generali SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assicurazioni Generali 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 Assicurazioni Generali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assicurazioni Generali has no effect on the direction of Sun Life i.e., Sun Life and Assicurazioni Generali go up and down completely randomly.
Pair Corralation between Sun Life and Assicurazioni Generali
Considering the 90-day investment horizon Sun Life is expected to generate 24.33 times less return on investment than Assicurazioni Generali. But when comparing it to its historical volatility, Sun Life Financial is 1.01 times less risky than Assicurazioni Generali. It trades about 0.01 of its potential returns per unit of risk. Assicurazioni Generali SpA is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,111 in Assicurazioni Generali SpA on February 2, 2024 and sell it today you would earn a total of 134.00 from holding Assicurazioni Generali SpA or generate 12.06% 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. Assicurazioni Generali SpA
Performance |
Timeline |
Sun Life Financial |
Assicurazioni Generali |
Sun Life and Assicurazioni Generali Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sun Life and Assicurazioni Generali
The main advantage of trading using opposite Sun Life and Assicurazioni Generali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Assicurazioni Generali 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 Assicurazioni Generali will offset losses from the drop in Assicurazioni Generali's long position.The idea behind Sun Life Financial and Assicurazioni Generali SpA 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.Assicurazioni Generali vs. Berkshire Hathaway | Assicurazioni Generali vs. Berkshire Hathaway | Assicurazioni Generali vs. American International 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |