Correlation Between Sun Life and Intact Financial
Can any of the company-specific risk be diversified away by investing in both Sun Life and Intact Financial 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 Intact Financial 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 Intact Financial, you can compare the effects of market volatilities on Sun Life and Intact Financial 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 Intact Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Intact Financial.
Diversification Opportunities for Sun Life and Intact Financial
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sun and Intact is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Intact Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intact Financial 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 Intact Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intact Financial has no effect on the direction of Sun Life i.e., Sun Life and Intact Financial go up and down completely randomly.
Pair Corralation between Sun Life and Intact Financial
Assuming the 90 days trading horizon Sun Life Financial is expected to generate 0.9 times more return on investment than Intact Financial. However, Sun Life Financial is 1.11 times less risky than Intact Financial. It trades about 0.09 of its potential returns per unit of risk. Intact Financial is currently generating about 0.03 per unit of risk. If you would invest 7,947 in Sun Life Financial on April 23, 2025 and sell it today you would earn a total of 428.00 from holding Sun Life Financial or generate 5.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.41% |
Values | Daily Returns |
Sun Life Financial vs. Intact Financial
Performance |
Timeline |
Sun Life Financial |
Intact Financial |
Sun Life and Intact Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sun Life and Intact Financial
The main advantage of trading using opposite Sun Life and Intact Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Intact Financial 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 Intact Financial will offset losses from the drop in Intact Financial's long position.Sun Life vs. Manulife Financial Corp | Sun Life vs. Great West Lifeco | Sun Life vs. National Bank of | Sun Life vs. Canadian Imperial Bank |
Intact Financial vs. iA Financial | Intact Financial vs. Thomson Reuters Corp | Intact Financial vs. Metro Inc | Intact Financial vs. Waste Connections |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |