Correlation Between Sun Life and Vienna Insurance

Can any of the company-specific risk be diversified away by investing in both Sun Life and Vienna 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 Vienna 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 Vienna Insurance Group, you can compare the effects of market volatilities on Sun Life and Vienna 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 Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Vienna Insurance.

Diversification Opportunities for Sun Life and Vienna Insurance

0.82

Correlation Coefficient

Sun Life  Vienna Insurance

Very poor diversification

The 3 months correlation between Sun and Vienna is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance 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 Vienna Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vienna Insurance has no effect on the direction of Sun Life i.e., Sun Life and Vienna Insurance go up and down completely randomly.

Pair Corralation between Sun Life and Vienna Insurance

Assuming the 90 days horizon Sun Life is expected to generate 1.75 times less return on investment than Vienna Insurance. But when comparing it to its historical volatility, Sun Life Financial is 1.32 times less risky than Vienna Insurance. It trades about 0.12 of its potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  3,871  in Vienna Insurance Group on April 20, 2025 and sell it today you would earn a total of  554.00  from holding Vienna Insurance Group or generate 14.31% return on investment over 90 days.

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

Sun Life Financial  vs.  Vienna Insurance Group

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 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Sun Life may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Vienna Insurance

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vienna Insurance Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Vienna Insurance reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sun Life and Vienna Insurance

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

The idea behind Sun Life Financial and Vienna Insurance Group 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 Anywhere module to track or share privately all of your investments from the convenience of any device.