Correlation Between Sunny Optical and McEwen Mining
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and McEwen Mining 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 Optical and McEwen Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunny Optical Technology and McEwen Mining, you can compare the effects of market volatilities on Sunny Optical and McEwen Mining 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 Optical with a short position of McEwen Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and McEwen Mining.
Diversification Opportunities for Sunny Optical and McEwen Mining
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunny and McEwen is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and McEwen Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McEwen Mining and Sunny Optical 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 Optical Technology are associated (or correlated) with McEwen Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McEwen Mining has no effect on the direction of Sunny Optical i.e., Sunny Optical and McEwen Mining go up and down completely randomly.
Pair Corralation between Sunny Optical and McEwen Mining
Assuming the 90 days trading horizon Sunny Optical Technology is expected to generate 1.08 times more return on investment than McEwen Mining. However, Sunny Optical is 1.08 times more volatile than McEwen Mining. It trades about 0.1 of its potential returns per unit of risk. McEwen Mining is currently generating about -0.04 per unit of risk. If you would invest 3,816 in Sunny Optical Technology on September 3, 2024 and sell it today you would earn a total of 2,494 from holding Sunny Optical Technology or generate 65.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.65% |
| Values | Daily Returns |
Sunny Optical Technology vs. McEwen Mining
Performance |
| Timeline |
| Sunny Optical Technology |
| McEwen Mining |
Sunny Optical and McEwen Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and McEwen Mining
The main advantage of trading using opposite Sunny Optical and McEwen Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, McEwen Mining 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 McEwen Mining will offset losses from the drop in McEwen Mining's long position.| Sunny Optical vs. Catalyst Media Group | Sunny Optical vs. CATLIN GROUP | Sunny Optical vs. Magnora ASA | Sunny Optical vs. RTW Venture Fund |
| McEwen Mining vs. Evolution Gaming Group | McEwen Mining vs. Central Asia Metals | McEwen Mining vs. Blackrock World Mining | McEwen Mining vs. Hochschild Mining plc |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |