Correlation Between Sunny Optical and ACG Acquisition
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and ACG Acquisition 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 ACG Acquisition 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 ACG Acquisition Co, you can compare the effects of market volatilities on Sunny Optical and ACG Acquisition 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 ACG Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and ACG Acquisition.
Diversification Opportunities for Sunny Optical and ACG Acquisition
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sunny and ACG is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and ACG Acquisition Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACG Acquisition 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 ACG Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACG Acquisition has no effect on the direction of Sunny Optical i.e., Sunny Optical and ACG Acquisition go up and down completely randomly.
Pair Corralation between Sunny Optical and ACG Acquisition
If you would invest 5,905 in Sunny Optical Technology on September 12, 2024 and sell it today you would earn a total of 615.00 from holding Sunny Optical Technology or generate 10.41% 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. ACG Acquisition Co
Performance |
| Timeline |
| Sunny Optical Technology |
| ACG Acquisition |
Sunny Optical and ACG Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and ACG Acquisition
The main advantage of trading using opposite Sunny Optical and ACG Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, ACG Acquisition 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 ACG Acquisition will offset losses from the drop in ACG Acquisition's long position.| Sunny Optical vs. Hong Kong Land | Sunny Optical vs. Neometals | Sunny Optical vs. Coor Service Management | Sunny Optical vs. Fidelity Sustainable USD |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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