Correlation Between FINCORP INVESTMENT and SUN

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

By analyzing existing cross correlation between FINCORP INVESTMENT LTD and SUN LIMITED, you can compare the effects of market volatilities on FINCORP INVESTMENT and SUN 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 FINCORP INVESTMENT with a short position of SUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of FINCORP INVESTMENT and SUN.

Diversification Opportunities for FINCORP INVESTMENT and SUN

-0.26

Correlation Coefficient

FINCORP INVESTMENT  SUN

Very good diversification

The 3 months correlation between FINCORP and SUN is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding FINCORP INVESTMENT LTD and SUN LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUN LIMITED and FINCORP INVESTMENT 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 FINCORP INVESTMENT LTD are associated (or correlated) with SUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUN LIMITED has no effect on the direction of FINCORP INVESTMENT i.e., FINCORP INVESTMENT and SUN go up and down completely randomly.

Pair Corralation between FINCORP INVESTMENT and SUN

Assuming the 90 days trading horizon FINCORP INVESTMENT is expected to generate 4.3 times less return on investment than SUN. But when comparing it to its historical volatility, FINCORP INVESTMENT LTD is 1.95 times less risky than SUN. It trades about 0.02 of its potential returns per unit of risk. SUN LIMITED is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  3,545  in SUN LIMITED on April 24, 2025 and sell it today you would earn a total of  260.00  from holding SUN LIMITED or generate 7.33% return on investment over 90 days.

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

FINCORP INVESTMENT LTD  vs.  SUN LIMITED

FINCORP INVESTMENT LTD

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FINCORP INVESTMENT LTD are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, FINCORP INVESTMENT is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

SUN LIMITED

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SUN LIMITED are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating primary indicators, SUN may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with FINCORP INVESTMENT and SUN

The main advantage of trading using opposite FINCORP INVESTMENT and SUN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FINCORP INVESTMENT position performs unexpectedly, SUN 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 will offset losses from the drop in SUN's long position.

The idea behind FINCORP INVESTMENT LTD and SUN LIMITED 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.