Correlation Between Robinsons Retail and Sun Life

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Robinsons Retail 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 Robinsons Retail and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robinsons Retail Holdings and Sun Life Financial, you can compare the effects of market volatilities on Robinsons Retail 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 Robinsons Retail with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robinsons Retail and Sun Life.

Diversification Opportunities for Robinsons Retail and Sun Life

0.58
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Robinsons and Sun is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Robinsons Retail Holdings 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 Robinsons Retail 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 Robinsons Retail Holdings 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 Robinsons Retail i.e., Robinsons Retail and Sun Life go up and down completely randomly.

Pair Corralation between Robinsons Retail and Sun Life

Assuming the 90 days trading horizon Robinsons Retail is expected to generate 3.05 times less return on investment than Sun Life. But when comparing it to its historical volatility, Robinsons Retail Holdings is 1.05 times less risky than Sun Life. It trades about 0.06 of its potential returns per unit of risk. Sun Life Financial is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  296,771  in Sun Life Financial on April 20, 2025 and sell it today you would earn a total of  43,429  from holding Sun Life Financial or generate 14.63% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy81.97%
ValuesDaily Returns

Robinsons Retail Holdings  vs.  Sun Life Financial

 Performance 
       Timeline  
Robinsons Retail Holdings 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Robinsons Retail Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Robinsons Retail is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
Sun Life Financial 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
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.

Robinsons Retail and Sun Life Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Robinsons Retail and Sun Life

The main advantage of trading using opposite Robinsons Retail and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robinsons Retail 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 Robinsons Retail Holdings 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.
Check out your portfolio center.
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

Other Complementary Tools

Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities