Correlation Between SUN LIFE and UNIQA INSURANCE

Can any of the company-specific risk be diversified away by investing in both SUN LIFE and UNIQA INSURANCE 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 UNIQA INSURANCE 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 UNIQA INSURANCE GR, you can compare the effects of market volatilities on SUN LIFE and UNIQA INSURANCE 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 UNIQA INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUN LIFE and UNIQA INSURANCE.

Diversification Opportunities for SUN LIFE and UNIQA INSURANCE

0.71

Correlation Coefficient

SUN LIFE  UNIQA INSURANCE

Poor diversification

The 3 months correlation between SUN and UNIQA is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding SUN LIFE FINANCIAL and UNIQA INSURANCE GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIQA INSURANCE GR 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 UNIQA INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIQA INSURANCE GR has no effect on the direction of SUN LIFE i.e., SUN LIFE and UNIQA INSURANCE go up and down completely randomly.

Pair Corralation between SUN LIFE and UNIQA INSURANCE

Assuming the 90 days trading horizon SUN LIFE is expected to generate 3.33 times less return on investment than UNIQA INSURANCE. But when comparing it to its historical volatility, SUN LIFE FINANCIAL is 1.79 times less risky than UNIQA INSURANCE. It trades about 0.1 of its potential returns per unit of risk. UNIQA INSURANCE GR is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  933.00  in UNIQA INSURANCE GR on April 23, 2025 and sell it today you would earn a total of  237.00  from holding UNIQA INSURANCE GR or generate 25.4% return on investment over 90 days.

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

SUN LIFE FINANCIAL  vs.  UNIQA INSURANCE GR

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 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, SUN LIFE may actually be approaching a critical reversion point that can send shares even higher in August 2025.

UNIQA INSURANCE GR

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in UNIQA INSURANCE GR are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, UNIQA INSURANCE unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SUN LIFE and UNIQA INSURANCE

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

The idea behind SUN LIFE FINANCIAL and UNIQA INSURANCE GR 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.