Correlation Between Sunny Optical and Ondine Biomedical
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Ondine Biomedical 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 Ondine Biomedical 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 Ondine Biomedical, you can compare the effects of market volatilities on Sunny Optical and Ondine Biomedical 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 Ondine Biomedical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Ondine Biomedical.
Diversification Opportunities for Sunny Optical and Ondine Biomedical
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sunny and Ondine is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Ondine Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ondine Biomedical 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 Ondine Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ondine Biomedical has no effect on the direction of Sunny Optical i.e., Sunny Optical and Ondine Biomedical go up and down completely randomly.
Pair Corralation between Sunny Optical and Ondine Biomedical
Assuming the 90 days trading horizon Sunny Optical Technology is expected to generate 0.75 times more return on investment than Ondine Biomedical. However, Sunny Optical Technology is 1.33 times less risky than Ondine Biomedical. It trades about 0.0 of its potential returns per unit of risk. Ondine Biomedical is currently generating about -0.02 per unit of risk. If you would invest 9,181 in Sunny Optical Technology on September 20, 2024 and sell it today you would lose (2,401) from holding Sunny Optical Technology or give up 26.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 89.38% |
| Values | Daily Returns |
Sunny Optical Technology vs. Ondine Biomedical
Performance |
| Timeline |
| Sunny Optical Technology |
| Ondine Biomedical |
Sunny Optical and Ondine Biomedical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Ondine Biomedical
The main advantage of trading using opposite Sunny Optical and Ondine Biomedical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Ondine Biomedical 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 Ondine Biomedical will offset losses from the drop in Ondine Biomedical's long position.| Sunny Optical vs. Samsung Electronics Co | Sunny Optical vs. Samsung Electronics Co | Sunny Optical vs. Hyundai Motor | Sunny Optical vs. Reliance Industries Ltd |
| Ondine Biomedical vs. Ebro Foods | Ondine Biomedical vs. Sunny Optical Technology | Ondine Biomedical vs. International Biotechnology Trust | Ondine Biomedical vs. SMA Solar 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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