Correlation Between Sunny Optical and Public Storage
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Public Storage 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 Public Storage 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 Public Storage, you can compare the effects of market volatilities on Sunny Optical and Public Storage 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 Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Public Storage.
Diversification Opportunities for Sunny Optical and Public Storage
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sunny and Public is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage 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 Public Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Storage has no effect on the direction of Sunny Optical i.e., Sunny Optical and Public Storage go up and down completely randomly.
Pair Corralation between Sunny Optical and Public Storage
Assuming the 90 days trading horizon Sunny Optical Technology is expected to generate 3.33 times more return on investment than Public Storage. However, Sunny Optical is 3.33 times more volatile than Public Storage. It trades about 0.08 of its potential returns per unit of risk. Public Storage is currently generating about -0.03 per unit of risk. If you would invest 6,675 in Sunny Optical Technology on November 6, 2024 and sell it today you would earn a total of 330.00 from holding Sunny Optical Technology or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. Public Storage
Performance |
| Timeline |
| Sunny Optical Technology |
| Public Storage |
Sunny Optical and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Public Storage
The main advantage of trading using opposite Sunny Optical and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Public Storage 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 Public Storage will offset losses from the drop in Public Storage's long position.| Sunny Optical vs. Target Healthcare REIT | Sunny Optical vs. Bellevue Healthcare Trust | Sunny Optical vs. Eco Animal Health | Sunny Optical vs. United Airlines Holdings |
| Public Storage vs. Primary Health Properties | Public Storage vs. Eco Animal Health | Public Storage vs. HCA Healthcare | Public Storage vs. Silvercorp Metals |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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