Correlation Between Benguet Corp and Sun Life

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

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

Diversification Opportunities for Benguet Corp and Sun Life

0.0

Correlation Coefficient

Benguet Corp  Sun Life

Pay attention - limited upside

The 3 months correlation between Benguet and Sun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benguet Corp A 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 Benguet Corp 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 Benguet Corp A 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 Benguet Corp i.e., Benguet Corp and Sun Life go up and down completely randomly.

Pair Corralation between Benguet Corp and Sun Life

If you would invest  296,969  in Sun Life Financial on April 24, 2025 and sell it today you would earn a total of  43,631  from holding Sun Life Financial or generate 14.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	2.0%
Values	Daily Returns

Benguet Corp A  vs.  Sun Life Financial

Benguet Corp A

Risk-Adjusted Performance

Insignificant

Over the last 90 days Benguet Corp A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Benguet Corp is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Sun Life Financial

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sun Life Financial are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Sun Life exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Benguet Corp and Sun Life

The main advantage of trading using opposite Benguet Corp and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benguet Corp 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 Benguet Corp A 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.