Correlation Between Sunny Electronics and YeSUN Tech
Can any of the company-specific risk be diversified away by investing in both Sunny Electronics and YeSUN Tech 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 Sunny Electronics and YeSUN Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunny Electronics Corp and YeSUN Tech CoLtd, you can compare the effects of market volatilities on Sunny Electronics and YeSUN Tech 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 Sunny Electronics with a short position of YeSUN Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Electronics and YeSUN Tech.
Diversification Opportunities for Sunny Electronics and YeSUN Tech
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sunny and YeSUN is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Electronics Corp and YeSUN Tech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YeSUN Tech CoLtd and Sunny Electronics 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 Sunny Electronics Corp are associated (or correlated) with YeSUN Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YeSUN Tech CoLtd has no effect on the direction of Sunny Electronics i.e., Sunny Electronics and YeSUN Tech go up and down completely randomly.
Pair Corralation between Sunny Electronics and YeSUN Tech
Assuming the 90 days trading horizon Sunny Electronics Corp is expected to generate 0.83 times more return on investment than YeSUN Tech. However, Sunny Electronics Corp is 1.21 times less risky than YeSUN Tech. It trades about -0.02 of its potential returns per unit of risk. YeSUN Tech CoLtd is currently generating about -0.06 per unit of risk. If you would invest 245,000 in Sunny Electronics Corp on September 3, 2024 and sell it today you would lose (84,000) from holding Sunny Electronics Corp or give up 34.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Electronics Corp vs. YeSUN Tech CoLtd
Performance |
| Timeline |
| Sunny Electronics Corp |
| YeSUN Tech CoLtd |
Sunny Electronics and YeSUN Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Electronics and YeSUN Tech
The main advantage of trading using opposite Sunny Electronics and YeSUN Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Electronics position performs unexpectedly, YeSUN Tech 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 YeSUN Tech will offset losses from the drop in YeSUN Tech's long position.| Sunny Electronics vs. AptaBio Therapeutics | Sunny Electronics vs. Daewoo SBI SPAC | Sunny Electronics vs. Dream Security co | Sunny Electronics vs. Microfriend |
| YeSUN Tech vs. Samji Electronics Co | YeSUN Tech vs. Sunny Electronics Corp | YeSUN Tech vs. LG Electronics | YeSUN Tech vs. Daeduck Electronics Co |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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