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
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sunny and GreenX is -0.64. 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 under-perform the GreenX Metals. In addition to that, Sunny Optical is 1.57 times more volatile than GreenX Metals. It trades about -0.05 of its total potential returns per unit of risk. GreenX Metals is currently generating about 0.44 per unit of volatility. If you would invest 3,400 in GreenX Metals on October 26, 2024 and sell it today you would earn a total of 650.00 from holding GreenX Metals or generate 19.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| 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. GreenX Metals | Sunny Optical vs. Coor Service Management | Sunny Optical vs. Europa Metals | Sunny Optical vs. Verizon Communications |
| GreenX Metals vs. Givaudan SA | GreenX Metals vs. Antofagasta PLC | GreenX Metals vs. Ferrexpo PLC | GreenX Metals vs. Atalaya Mining |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |