Correlation Between Sunny Optical and Berkshire Hathaway
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Berkshire Hathaway 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 Berkshire Hathaway 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 Berkshire Hathaway, you can compare the effects of market volatilities on Sunny Optical and Berkshire Hathaway 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 Berkshire Hathaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Berkshire Hathaway.
Diversification Opportunities for Sunny Optical and Berkshire Hathaway
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunny and Berkshire is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Berkshire Hathaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hathaway 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 Berkshire Hathaway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkshire Hathaway has no effect on the direction of Sunny Optical i.e., Sunny Optical and Berkshire Hathaway go up and down completely randomly.
Pair Corralation between Sunny Optical and Berkshire Hathaway
Assuming the 90 days trading horizon Sunny Optical Technology is expected to generate 2.08 times more return on investment than Berkshire Hathaway. However, Sunny Optical is 2.08 times more volatile than Berkshire Hathaway. It trades about 0.08 of its potential returns per unit of risk. Berkshire Hathaway is currently generating about 0.1 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. Berkshire Hathaway
Performance |
| Timeline |
| Sunny Optical Technology |
| Berkshire Hathaway |
Sunny Optical and Berkshire Hathaway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Berkshire Hathaway
The main advantage of trading using opposite Sunny Optical and Berkshire Hathaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Berkshire Hathaway 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 Berkshire Hathaway will offset losses from the drop in Berkshire Hathaway's long position.| Sunny Optical vs. Ondine Biomedical | Sunny Optical vs. Gamma Communications PLC | Sunny Optical vs. Spirent Communications plc | Sunny Optical vs. Medical Properties Trust |
| Berkshire Hathaway vs. Tyson Foods Cl | Berkshire Hathaway vs. Supermarket Income REIT | Berkshire Hathaway vs. Advanced Medical Solutions | Berkshire Hathaway vs. Ecclesiastical Insurance Office |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges |