Correlation Between Sunny Optical and BH Macro
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and BH Macro 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 BH Macro 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 BH Macro Limited, you can compare the effects of market volatilities on Sunny Optical and BH Macro 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 BH Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and BH Macro.
Diversification Opportunities for Sunny Optical and BH Macro
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sunny and BHMU is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and BH Macro Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BH Macro Limited 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 BH Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BH Macro Limited has no effect on the direction of Sunny Optical i.e., Sunny Optical and BH Macro go up and down completely randomly.
Pair Corralation between Sunny Optical and BH Macro
Assuming the 90 days trading horizon Sunny Optical Technology is expected to generate 3.01 times more return on investment than BH Macro. However, Sunny Optical is 3.01 times more volatile than BH Macro Limited. It trades about 0.26 of its potential returns per unit of risk. BH Macro Limited is currently generating about 0.14 per unit of risk. If you would invest 5,085 in Sunny Optical Technology on September 1, 2024 and sell it today you would earn a total of 1,225 from holding Sunny Optical Technology or generate 24.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sunny Optical Technology vs. BH Macro Limited
Performance |
| Timeline |
| Sunny Optical Technology |
| BH Macro Limited |
Sunny Optical and BH Macro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and BH Macro
The main advantage of trading using opposite Sunny Optical and BH Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, BH Macro 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 BH Macro will offset losses from the drop in BH Macro's long position.| Sunny Optical vs. Take Two Interactive Software | Sunny Optical vs. MT Bank Corp | Sunny Optical vs. UNIQA Insurance Group | Sunny Optical vs. National Bank of |
| BH Macro vs. PureTech Health plc | BH Macro vs. Blackstone Loan Financing | BH Macro vs. Sunny Optical Technology | BH Macro vs. Made Tech Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |