Correlation Between Sunny Optical and Oncimmune Holdings
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Oncimmune Holdings 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 Oncimmune Holdings 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 Oncimmune Holdings plc, you can compare the effects of market volatilities on Sunny Optical and Oncimmune Holdings 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 Oncimmune Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Oncimmune Holdings.
Diversification Opportunities for Sunny Optical and Oncimmune Holdings
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunny and Oncimmune is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Oncimmune Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncimmune Holdings plc 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 Oncimmune Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncimmune Holdings plc has no effect on the direction of Sunny Optical i.e., Sunny Optical and Oncimmune Holdings go up and down completely randomly.
Pair Corralation between Sunny Optical and Oncimmune Holdings
Assuming the 90 days trading horizon Sunny Optical Technology is expected to generate 0.69 times more return on investment than Oncimmune Holdings. However, Sunny Optical Technology is 1.44 times less risky than Oncimmune Holdings. It trades about 0.15 of its potential returns per unit of risk. Oncimmune Holdings plc is currently generating about 0.02 per unit of risk. If you would invest 3,960 in Sunny Optical Technology on November 3, 2024 and sell it today you would earn a total of 3,045 from holding Sunny Optical Technology or generate 76.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Sunny Optical Technology vs. Oncimmune Holdings plc
Performance |
| Timeline |
| Sunny Optical Technology |
| Oncimmune Holdings plc |
Sunny Optical and Oncimmune Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Oncimmune Holdings
The main advantage of trading using opposite Sunny Optical and Oncimmune Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Oncimmune Holdings 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 Oncimmune Holdings will offset losses from the drop in Oncimmune Holdings' long position.| Sunny Optical vs. Rheinmetall AG | Sunny Optical vs. Empire Metals Limited | Sunny Optical vs. Wheaton Precious Metals | Sunny Optical vs. Samsung Electronics Co |
| Oncimmune Holdings vs. Livermore Investments Group | Oncimmune Holdings vs. Monks Investment Trust | Oncimmune Holdings vs. Mineral Financial Investments | Oncimmune Holdings vs. Fresenius Medical Care |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |