Correlation Between TYSNES SPAREBANK and Sun Life

Can any of the company-specific risk be diversified away by investing in both TYSNES SPAREBANK and Sun Life 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 TYSNES SPAREBANK and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TYSNES SPAREBANK NK and Sun Life Financial, you can compare the effects of market volatilities on TYSNES SPAREBANK 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 TYSNES SPAREBANK with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of TYSNES SPAREBANK and Sun Life.

Diversification Opportunities for TYSNES SPAREBANK and Sun Life

0.17

Correlation Coefficient

TYSNES SPAREBANK  Sun Life

Average diversification

The 3 months correlation between TYSNES and Sun is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding TYSNES SPAREBANK NK 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 TYSNES SPAREBANK 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 TYSNES SPAREBANK NK 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 TYSNES SPAREBANK i.e., TYSNES SPAREBANK and Sun Life go up and down completely randomly.

Pair Corralation between TYSNES SPAREBANK and Sun Life

Assuming the 90 days horizon TYSNES SPAREBANK NK is expected to generate 1.04 times more return on investment than Sun Life. However, TYSNES SPAREBANK is 1.04 times more volatile than Sun Life Financial. It trades about 0.27 of its potential returns per unit of risk. Sun Life Financial is currently generating about 0.07 per unit of risk. If you would invest  1,016  in TYSNES SPAREBANK NK on April 24, 2025 and sell it today you would earn a total of  197.00  from holding TYSNES SPAREBANK NK or generate 19.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

TYSNES SPAREBANK NK  vs.  Sun Life Financial

TYSNES SPAREBANK

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in TYSNES SPAREBANK NK are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, TYSNES SPAREBANK reported solid returns over the last few months and may actually be approaching a breakup point.

Sun Life Financial

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sun Life Financial are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Sun Life is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with TYSNES SPAREBANK and Sun Life

The main advantage of trading using opposite TYSNES SPAREBANK and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TYSNES SPAREBANK 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 TYSNES SPAREBANK NK 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.

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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.