Correlation Between Sunny Optical and Panther Metals
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Panther 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 Panther 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 Panther Metals PLC, you can compare the effects of market volatilities on Sunny Optical and Panther 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 Panther Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Panther Metals.
Diversification Opportunities for Sunny Optical and Panther Metals
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunny and Panther is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Panther Metals PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panther Metals 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 Panther Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panther Metals PLC has no effect on the direction of Sunny Optical i.e., Sunny Optical and Panther Metals go up and down completely randomly.
Pair Corralation between Sunny Optical and Panther Metals
Assuming the 90 days trading horizon Sunny Optical is expected to generate 1.73 times less return on investment than Panther Metals. But when comparing it to its historical volatility, Sunny Optical Technology is 1.34 times less risky than Panther Metals. It trades about 0.19 of its potential returns per unit of risk. Panther Metals PLC is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 9,500 in Panther Metals PLC on August 28, 2024 and sell it today you would earn a total of 2,750 from holding Panther Metals PLC or generate 28.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sunny Optical Technology vs. Panther Metals PLC
Performance |
| Timeline |
| Sunny Optical Technology |
| Panther Metals PLC |
Sunny Optical and Panther Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Panther Metals
The main advantage of trading using opposite Sunny Optical and Panther Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Panther 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 Panther Metals will offset losses from the drop in Panther Metals' long position.| Sunny Optical vs. Samsung Electronics Co | Sunny Optical vs. Samsung Electronics Co | Sunny Optical vs. Hyundai Motor | Sunny Optical vs. Toyota Motor Corp |
| Panther Metals vs. Givaudan SA | Panther Metals vs. Antofagasta PLC | Panther Metals vs. Centamin PLC | Panther 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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