Sun Life Financial Preferred Stock Volatility

SLF-PD Preferred Stock  CAD 20.87  -0.31  -1.46%   
Sun Life Financial shows relatively low price volatility over the last 3 months. The current Sharpe ratio for Sun Life Financial is -0.0759, reflecting negative risk-adjusted performance over the last 3 months. The current setup includes 23 technical indicators relevant to risk behavior.

Sharpe Ratio = -0.0759

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Negative ReturnsSLF-PD

Estimated Market Risk

 0.59
  actual daily
5
95% of assets are more volatile

Expected Return

 -0.04
  actual daily
0
Most of other assets have higher returns

Risk-Adjusted Return

 -0.08
  actual daily
0
Most of other assets perform better
For Sun Life Financial, recent data highlights a Market Risk Adjusted Performance of -0.4%, a Risk of 0.59, and a Risk Adjusted Performance of -0.1%. Based on recent moving average trends, Sun Life has not achieved its theoretical performance maximum. Pairing it with a well-diversified portfolio structure may improve overall efficiency.
Key indicators related to Sun Life's volatility include:
90 Days Market Risk
Chance Of Distress
90 Days Economic Sensitivity
The volatility profile of Sun Life determines how much Sun Life's price can move in either direction over a given time frame. Investors use volatility estimates to size positions, set stop-loss levels, and price the cost of hedging Sun Life exposure.
  

Volatility Strategy

Volatility in Sun Life Financial reflects changing market conditions that influence diversification outcomes. Current statistical measures show total volatility near 0.59% with a beta coefficient of 0.13, indicating sensitivity relative to the broader market benchmark. Risk-adjusted efficiency, represented by a Sharpe ratio of -0.0759, evaluates return per unit of total risk. An alpha value of -0.0421 reflects performance relative to systematic market exposure. Expected return estimates near -0.0447% are derived from historical distribution modeling and help frame forward-looking return assumptions within a portfolio context. Competitive positioning may influence variability.

Main indicators related to Sun Life's market risk premium analysis include:

 Beta
0.13
 Alpha
-0.04
 Risk
0.59
 Sharpe Ratio
-0.08
 Expected Return
-0.04

Moving together with Sun Preferred Stock

  0.65SLF-PC Sun Life FinancialPairCorr

Moving against Sun Preferred Stock

  0.47MPCT-UN Dream Impact TrustPairCorr
  0.39GCG Guardian Capital Earnings Call This WeekPairCorr
  0.35MU Micron CDR SplitPairCorr

Sensitivity To Market

The beta coefficient of 0.13 for Sun Life Financial measures how its returns respond to broader market changes. In regression terms, beta captures the slope between asset returns and index returns. Historical volatility is currently near 0.59%.Sun Life Financial return patterns over the selected horizon reflect a minimal level of variability, based on dispersion and downside-focused statistics. Stock volatility often clusters, meaning high-volatility periods can come in waves.
Check current 90 days Sun Life correlation with market (Dow Jones Industrial)
α-0.0421   β0.13
3 Months Beta |Analyze Sun Life Financial Demand Trend
Check current 90 days Sun Life correlation with market (Dow Jones Industrial)

Downside Risk

Sun standard deviation quantifies the typical daily price movement relative to its average over your selected period. Volatile instruments show high standard deviation; stable instruments show low.
Standard Deviation
    
  0.59  
The difference between upside risk and downside risk is meaningful for Sun Life investors. Upside risk is measured by Sun Life's standard deviation, while downside risk is captured by semi-deviation or downside deviation of Sun Life's daily returns. For Sun Life Financial, recent data highlights a Maximum Drawdown of 3.71.

Preferred Stock Volatility Analysis

When measuring the risk of Sun Life preferred stock, volatility is a critical metric. It indicates how dramatically Sun Life's price swings over a specific time horizon. A preferred stock with high volatility can produce outsized gains or losses compared to a low-volatility alternative.
Transformation
This analysis covers sixty-one data points across the selected time horizon. Sun Life Financial Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Projected Return Density Against Market

Assuming the 90-day trading horizon Sun Life has a beta of 0.1286 . This usually implies as returns on the market go up, Sun Life's average returns are expected to increase less than the benchmark. However, during a bear market, the loss from holding Sun Life Financial is expected to be smaller as well.
Sun Life carries exposure to broad market movements as well as company or sector-specific developments. While portfolio diversification can reduce asset-level risk, systematic volatility cannot be avoided. Standard deviation and beta quantify this exposure. For Sun Life Financial, recent data highlights a Mean Deviation of 0.40 and a Standard Deviation of 0.59.
Sun Life Financial has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the Dow Jones Industrial.
   Predicted Return Density   
       Returns  
Sun Life's volatility is measured either by using standard deviation or beta. Standard deviation reflects how much Sun Life's price typically deviates from the mean over a given period.

What Drives Sun Life's Price Volatility?

Several factors can influence Sun Life's market volatility:

Industry Dynamics

Sector-level events can directly affect Sun Life's price stability. Regulatory changes, supply disruptions, or shifts in demand within Sun Life's industry may create volatility even when the broader market is calm. Competitive dynamics and industry consolidation can also amplify price swings for companies like Sun Life.

Political and Economic Environment

Macroeconomic conditions and policy decisions shape the backdrop for Sun Life's price movements. Interest rate changes, trade policy shifts, and fiscal legislation can all alter investor sentiment toward Sun Life. During periods of economic expansion, Sun Life's price tends to benefit from broader market optimism, while downturns can amplify selling pressure.

Sun Life's Company-Specific Factors

Volatility can also stem from events unique to Sun Life. Earnings surprises, management changes, product launches, or legal developments may trigger sharp price reactions in Sun Life's stock. Conversely, operational setbacks, guidance revisions, or data breaches can weigh on Sun Life's share price.

Preferred Stock Risk Measures

Assuming the 90-day trading horizon the coefficient of variation of Sun Life is -1317.24. The daily returns are distributed with a variance of 0.35 and standard deviation of 0.59. The mean deviation of Sun Life Financial is currently at 0.4. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.8
α
Alpha over Dow Jones
-0.0421
β
Beta against Dow Jones0.13
σ
Overall volatility
0.59
Ir
Information ratio 0.07

Preferred Stock Return Volatility

Volatility for Sun Life quantifies the day-to-day dispersion of preferred stock returns around their historical average. The company carries 0.5894% return volatility across the 90-day horizon. As a benchmark, Dow Jones Industrial has volatility of 0.8181% on return distribution over a 90-day investment horizon.
 Performance 
       Timeline  

Related Correlations Analysis


Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

HDHD
MKOBPO-PG
MKOHD
HDMKO
HLUHOT-U
HLUHD
  

High negative correlations

HLUBPO-PG

Risk-Adjusted Indicators

Sun Life Company may look attractive on headline returns alone, but deeper analysis often tells a different story. A thorough review of Sun Life's risk-adjusted indicators provides a clearer picture of whether returns are being earned efficiently. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Risk Metrics, Assumptions & Methodology

Volatility for Sun Life measures return dispersion and uncertainty over time. Standard deviation provides a baseline measure of variability magnitude. Sun Life has a market cap of 30.99 B, P/E of 5.31, ROE of 11.09%.

This section for Sun Life Financial is built from periodic company reporting and market reference feeds, with harmonization applied to align reporting definitions. Values may update on different source schedules. Volatility and downside metrics are estimated from historical return dispersion.

This content is curated and reviewed by:

Ellen Johnson - Member of Macroaxis Editorial Board
Last reviewed on March 9th, 2026

Sun Life Investment Opportunity

Measured over the selected horizon, Dow Jones Industrial carries roughly 1.39 times the return volatility of Sun Life Financial. Investors usually compare this volatility gap with trend durability and valuation before deciding which name better fits the mandate.You can use Sun Life Financial to protect your portfolios against small market fluctuations. This directional read frames the latest price swing through a simple momentum and follow-through lens. It works best as a directional cue rather than as a standalone forecast. a somewhat bearish sentiment, but the market may correct it shortly. Check odds of Sun Life to be traded at C$20.24 in 90 days.
Significant diversification
For the present investment horizon, the measured correlation between SLF-PD and DJI stands at 0.07, or Significant diversification. In portfolio terms, the overlap visualization shows how much shared movement remains after both positions are combined.

Sun Life Additional Risk Indicators

Secondary risk indicators for Sun Life Financial can help investors evaluate exposure beyond standard deviation, beta, or one headline volatility measure. Used correctly, these measures can support both standalone risk assessment and portfolio-level hedging decisions.

Sun Life Suggested Diversification Pairs

Using Sun Life in a pair-trading setup can improve risk control because gains and losses are judged against a second position instead of against the market alone. A disciplined pair strategy still requires monitoring because correlation can weaken when market regimes change.
Risk reduction through pair trading is real but has limits - not every type of exposure can be offset by a second leg. Sun Life's exposure to overall market risk stays intact regardless of pairing. The value of a second leg lies in reducing Sun Life's idiosyncratic risk - the part that comes from company-level events rather than macro conditions.

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