Correlation Between Sunny Optical and Concurrent Technologies
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Concurrent Technologies 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 Concurrent Technologies 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 Concurrent Technologies Plc, you can compare the effects of market volatilities on Sunny Optical and Concurrent Technologies 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 Concurrent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Concurrent Technologies.
Diversification Opportunities for Sunny Optical and Concurrent Technologies
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sunny and Concurrent is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Concurrent Technologies Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concurrent Technologies 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 Concurrent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concurrent Technologies has no effect on the direction of Sunny Optical i.e., Sunny Optical and Concurrent Technologies go up and down completely randomly.
Pair Corralation between Sunny Optical and Concurrent Technologies
Assuming the 90 days trading horizon Sunny Optical is expected to generate 6.32 times less return on investment than Concurrent Technologies. In addition to that, Sunny Optical is 1.82 times more volatile than Concurrent Technologies Plc. It trades about 0.01 of its total potential returns per unit of risk. Concurrent Technologies Plc is currently generating about 0.13 per unit of volatility. If you would invest 7,478 in Concurrent Technologies Plc on September 14, 2024 and sell it today you would earn a total of 6,172 from holding Concurrent Technologies Plc or generate 82.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.4% |
| Values | Daily Returns |
Sunny Optical Technology vs. Concurrent Technologies Plc
Performance |
| Timeline |
| Sunny Optical Technology |
| Concurrent Technologies |
Sunny Optical and Concurrent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Concurrent Technologies
The main advantage of trading using opposite Sunny Optical and Concurrent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Concurrent Technologies 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 Concurrent Technologies will offset losses from the drop in Concurrent Technologies' long position.| Sunny Optical vs. Amedeo Air Four | Sunny Optical vs. Odfjell Drilling | Sunny Optical vs. Aeorema Communications Plc | Sunny Optical vs. Wizz Air Holdings |
| Concurrent Technologies vs. Berkshire Hathaway | Concurrent Technologies vs. Hyundai Motor | Concurrent Technologies vs. Samsung Electronics Co | Concurrent Technologies vs. Samsung Electronics Co |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |