Correlation Between Sunny Optical and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and GreenX Metals 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 GreenX Metals 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 GreenX Metals, you can compare the effects of market volatilities on Sunny Optical and GreenX Metals 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 GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and GreenX Metals.
Diversification Opportunities for Sunny Optical and GreenX Metals
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sunny and GreenX is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals 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 GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of Sunny Optical i.e., Sunny Optical and GreenX Metals go up and down completely randomly.
Pair Corralation between Sunny Optical and GreenX Metals
Assuming the 90 days trading horizon Sunny Optical Technology is expected to generate 1.54 times more return on investment than GreenX Metals. However, Sunny Optical is 1.54 times more volatile than GreenX Metals. It trades about 0.26 of its potential returns per unit of risk. GreenX Metals is currently generating about -0.24 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. GreenX Metals
Performance |
| Timeline |
| Sunny Optical Technology |
| GreenX Metals |
Sunny Optical and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and GreenX Metals
The main advantage of trading using opposite Sunny Optical and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, GreenX Metals 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 GreenX Metals will offset losses from the drop in GreenX Metals' 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 |
| GreenX Metals vs. Infrastrutture Wireless Italiane | GreenX Metals vs. JD Sports Fashion | GreenX Metals vs. Fevertree Drinks Plc | GreenX Metals vs. Pfeiffer Vacuum Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |