Correlation Between Sunny Optical and Apax Global
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Apax Global 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 Apax Global 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 Apax Global Alpha, you can compare the effects of market volatilities on Sunny Optical and Apax Global 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 Apax Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Apax Global.
Diversification Opportunities for Sunny Optical and Apax Global
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunny and Apax is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Apax Global Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apax Global Alpha 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 Apax Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apax Global Alpha has no effect on the direction of Sunny Optical i.e., Sunny Optical and Apax Global go up and down completely randomly.
Pair Corralation between Sunny Optical and Apax Global
Assuming the 90 days trading horizon Sunny Optical Technology is expected to generate 2.53 times more return on investment than Apax Global. However, Sunny Optical is 2.53 times more volatile than Apax Global Alpha. It trades about 0.02 of its potential returns per unit of risk. Apax Global Alpha is currently generating about -0.02 per unit of risk. If you would invest 6,761 in Sunny Optical Technology on September 12, 2024 and sell it today you would lose (241.00) from holding Sunny Optical Technology or give up 3.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.82% |
| Values | Daily Returns |
Sunny Optical Technology vs. Apax Global Alpha
Performance |
| Timeline |
| Sunny Optical Technology |
| Apax Global Alpha |
Sunny Optical and Apax Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Apax Global
The main advantage of trading using opposite Sunny Optical and Apax Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Apax Global 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 Apax Global will offset losses from the drop in Apax Global'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 |
| Apax Global vs. Sunny Optical Technology | Apax Global vs. Coeur Mining | Apax Global vs. Playtech Plc | Apax Global vs. L3Harris Technologies |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |