Correlation Between Sunny Optical and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Jupiter Fund 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 Jupiter Fund 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 Jupiter Fund Management, you can compare the effects of market volatilities on Sunny Optical and Jupiter Fund 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 Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Jupiter Fund.
Diversification Opportunities for Sunny Optical and Jupiter Fund
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sunny and Jupiter is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management 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 Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of Sunny Optical i.e., Sunny Optical and Jupiter Fund go up and down completely randomly.
Pair Corralation between Sunny Optical and Jupiter Fund
Assuming the 90 days trading horizon Sunny Optical Technology is expected to generate 2.62 times more return on investment than Jupiter Fund. However, Sunny Optical is 2.62 times more volatile than Jupiter Fund Management. It trades about 0.13 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about -0.02 per unit of risk. If you would invest 4,835 in Sunny Optical Technology on September 2, 2024 and sell it today you would earn a total of 1,475 from holding Sunny Optical Technology or generate 30.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. Jupiter Fund Management
Performance |
| Timeline |
| Sunny Optical Technology |
| Jupiter Fund Management |
Sunny Optical and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Jupiter Fund
The main advantage of trading using opposite Sunny Optical and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund's long position.| Sunny Optical vs. Uniper SE | Sunny Optical vs. Mulberry Group PLC | Sunny Optical vs. London Security Plc | Sunny Optical vs. Triad Group PLC |
| Jupiter Fund vs. Toyota Motor Corp | Jupiter Fund vs. SoftBank Group Corp | Jupiter Fund vs. OTP Bank Nyrt | Jupiter Fund vs. Las Vegas Sands |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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