Correlation Between PHN Multi and Sun Life
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By analyzing existing cross correlation between PHN Multi Style All Cap and Sun Life Financial, you can compare the effects of market volatilities on PHN Multi and Sun Life 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 PHN Multi with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHN Multi and Sun Life.
Diversification Opportunities for PHN Multi and Sun Life
Pay attention - limited upside
The 3 months correlation between PHN and Sun is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding PHN Multi Style All Cap and Sun Life Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Life Financial and PHN Multi 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 PHN Multi Style All Cap are associated (or correlated) with Sun Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Life Financial has no effect on the direction of PHN Multi i.e., PHN Multi and Sun Life go up and down completely randomly.
Pair Corralation between PHN Multi and Sun Life
Assuming the 90 days trading horizon PHN Multi Style All Cap is expected to generate 0.99 times more return on investment than Sun Life. However, PHN Multi Style All Cap is 1.01 times less risky than Sun Life. It trades about 0.29 of its potential returns per unit of risk. Sun Life Financial is currently generating about -0.1 per unit of risk. If you would invest 2,547 in PHN Multi Style All Cap on September 5, 2024 and sell it today you would earn a total of 339.00 from holding PHN Multi Style All Cap or generate 13.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
PHN Multi Style All Cap vs. Sun Life Financial
Performance |
Timeline |
PHN Multi Style |
Sun Life Financial |
PHN Multi and Sun Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PHN Multi and Sun Life
The main advantage of trading using opposite PHN Multi and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHN Multi position performs unexpectedly, Sun Life 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 Sun Life will offset losses from the drop in Sun Life's long position.The idea behind PHN Multi Style All Cap and Sun Life Financial 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.Sun Life vs. BMO Aggregate Bond | Sun Life vs. Terreno Resources Corp | Sun Life vs. iShares Canadian HYBrid | Sun Life vs. Brompton European Dividend |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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