Correlation Between Sunny Optical and Jardine Matheson
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Jardine Matheson 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 Jardine Matheson 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 Jardine Matheson Holdings, you can compare the effects of market volatilities on Sunny Optical and Jardine Matheson 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 Jardine Matheson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Jardine Matheson.
Diversification Opportunities for Sunny Optical and Jardine Matheson
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sunny and Jardine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Jardine Matheson Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jardine Matheson Holdings 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 Jardine Matheson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jardine Matheson Holdings has no effect on the direction of Sunny Optical i.e., Sunny Optical and Jardine Matheson go up and down completely randomly.
Pair Corralation between Sunny Optical and Jardine Matheson
Assuming the 90 days trading horizon Sunny Optical Technology is expected to under-perform the Jardine Matheson. In addition to that, Sunny Optical is 10.37 times more volatile than Jardine Matheson Holdings. It trades about -0.01 of its total potential returns per unit of risk. Jardine Matheson Holdings is currently generating about 0.04 per unit of volatility. If you would invest 5,816 in Jardine Matheson Holdings on September 3, 2024 and sell it today you would earn a total of 434.00 from holding Jardine Matheson Holdings or generate 7.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 89.75% |
| Values | Daily Returns |
Sunny Optical Technology vs. Jardine Matheson Holdings
Performance |
| Timeline |
| Sunny Optical Technology |
| Jardine Matheson Holdings |
Sunny Optical and Jardine Matheson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Jardine Matheson
The main advantage of trading using opposite Sunny Optical and Jardine Matheson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Jardine Matheson 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 Jardine Matheson will offset losses from the drop in Jardine Matheson's long position.| Sunny Optical vs. Catalyst Media Group | Sunny Optical vs. CATLIN GROUP | Sunny Optical vs. RTW Venture Fund | Sunny Optical vs. Secure Property Development |
| Jardine Matheson vs. Pets at Home | Jardine Matheson vs. United Utilities Group | Jardine Matheson vs. Young Cos Brewery | Jardine Matheson vs. Ecofin Global Utilities |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |