Correlation Between Sun Life and Atlas Consolidated

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

Diversification Opportunities for Sun Life and Atlas Consolidated

0.21

Correlation Coefficient

Sun Life  Atlas Consolidated

Modest diversification

The 3 months correlation between Sun and Atlas is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Atlas Consolidated Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Consolidated Mining 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 Atlas Consolidated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Consolidated Mining has no effect on the direction of Sun Life i.e., Sun Life and Atlas Consolidated go up and down completely randomly.

Pair Corralation between Sun Life and Atlas Consolidated

Assuming the 90 days trading horizon Sun Life Financial is expected to generate 1.47 times more return on investment than Atlas Consolidated. However, Sun Life is 1.47 times more volatile than Atlas Consolidated Mining. It trades about 0.05 of its potential returns per unit of risk. Atlas Consolidated Mining is currently generating about 0.02 per unit of risk. If you would invest  268,204  in Sun Life Financial on April 15, 2025 and sell it today you would earn a total of  71,796  from holding Sun Life Financial or generate 26.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	82.77%
Values	Daily Returns

Sun Life Financial  vs.  Atlas Consolidated Mining

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 uncertain technical and fundamental indicators, Sun Life exhibited solid returns over the last few months and may actually be approaching a breakup point.

Atlas Consolidated Mining

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Atlas Consolidated Mining are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Atlas Consolidated is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Sun Life and Atlas Consolidated

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

The idea behind Sun Life Financial and Atlas Consolidated Mining 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.