Correlation Between Sun Life and Natures Sunshine
Can any of the company-specific risk be diversified away by investing in both Sun Life and Natures Sunshine 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 Natures Sunshine 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 Natures Sunshine Products, you can compare the effects of market volatilities on Sun Life and Natures Sunshine 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 Natures Sunshine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Life and Natures Sunshine.
Diversification Opportunities for Sun Life and Natures Sunshine
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sun and Natures is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sun Life Financial and Natures Sunshine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natures Sunshine Products 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 Natures Sunshine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natures Sunshine Products has no effect on the direction of Sun Life i.e., Sun Life and Natures Sunshine go up and down completely randomly.
Pair Corralation between Sun Life and Natures Sunshine
Considering the 90-day investment horizon Sun Life Financial is expected to generate 0.54 times more return on investment than Natures Sunshine. However, Sun Life Financial is 1.86 times less risky than Natures Sunshine. It trades about 0.0 of its potential returns per unit of risk. Natures Sunshine Products is currently generating about -0.01 per unit of risk. If you would invest 6,132 in Sun Life Financial on July 10, 2025 and sell it today you would lose (49.00) from holding Sun Life Financial or give up 0.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Life Financial vs. Natures Sunshine Products
Performance |
| Timeline |
| Sun Life Financial |
| Natures Sunshine Products |
Sun Life and Natures Sunshine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Life and Natures Sunshine
The main advantage of trading using opposite Sun Life and Natures Sunshine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Life position performs unexpectedly, Natures Sunshine 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 Natures Sunshine will offset losses from the drop in Natures Sunshine's long position.| Sun Life vs. Axa Equitable Holdings | Sun Life vs. American International Group | Sun Life vs. Arch Capital Group | Sun Life vs. Old Republic International |
| Natures Sunshine vs. Central Garden Pet | Natures Sunshine vs. Central Garden Pet | Natures Sunshine vs. Lifevantage | Natures Sunshine vs. Lifeway Foods |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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