Correlation Between Goosehead Insurance and Sun Life
Can any of the company-specific risk be diversified away by investing in both Goosehead Insurance 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 Goosehead Insurance and Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goosehead Insurance and Sun Life Financial, you can compare the effects of market volatilities on Goosehead Insurance 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 Goosehead Insurance with a short position of Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goosehead Insurance and Sun Life.
Diversification Opportunities for Goosehead Insurance and Sun Life
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Goosehead and Sun is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Goosehead Insurance 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 Goosehead Insurance 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 Goosehead Insurance 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 Goosehead Insurance i.e., Goosehead Insurance and Sun Life go up and down completely randomly.
Pair Corralation between Goosehead Insurance and Sun Life
Given the investment horizon of 90 days Goosehead Insurance is expected to under-perform the Sun Life. In addition to that, Goosehead Insurance is 2.14 times more volatile than Sun Life Financial. It trades about -0.12 of its total potential returns per unit of risk. Sun Life Financial is currently generating about -0.1 per unit of volatility. If you would invest 6,420 in Sun Life Financial on June 3, 2025 and sell it today you would lose (577.00) from holding Sun Life Financial or give up 8.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goosehead Insurance vs. Sun Life Financial
Performance |
| Timeline |
| Goosehead Insurance |
| Sun Life Financial |
Goosehead Insurance and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goosehead Insurance and Sun Life
The main advantage of trading using opposite Goosehead Insurance and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goosehead Insurance 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.| Goosehead Insurance vs. Arch Capital Group | Goosehead Insurance vs. Axa Equitable Holdings | Goosehead Insurance vs. Hamilton Lane | Goosehead Insurance vs. International General Insurance |
| Sun Life vs. Axa Equitable Holdings | Sun Life vs. American International Group | Sun Life vs. Arch Capital Group | Sun Life vs. Old Republic International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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