Correlation Between WinMate Communication and Sunny Friend
Can any of the company-specific risk be diversified away by investing in both WinMate Communication and Sunny Friend 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 WinMate Communication and Sunny Friend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WinMate Communication INC and Sunny Friend Environmental, you can compare the effects of market volatilities on WinMate Communication and Sunny Friend 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 WinMate Communication with a short position of Sunny Friend. Check out your portfolio center. Please also check ongoing floating volatility patterns of WinMate Communication and Sunny Friend.
Diversification Opportunities for WinMate Communication and Sunny Friend
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WinMate and Sunny is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding WinMate Communication INC and Sunny Friend Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Friend Environ and WinMate Communication 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 WinMate Communication INC are associated (or correlated) with Sunny Friend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Friend Environ has no effect on the direction of WinMate Communication i.e., WinMate Communication and Sunny Friend go up and down completely randomly.
Pair Corralation between WinMate Communication and Sunny Friend
Assuming the 90 days trading horizon WinMate Communication INC is expected to generate 1.21 times more return on investment than Sunny Friend. However, WinMate Communication is 1.21 times more volatile than Sunny Friend Environmental. It trades about 0.05 of its potential returns per unit of risk. Sunny Friend Environmental is currently generating about -0.07 per unit of risk. If you would invest 11,100 in WinMate Communication INC on September 2, 2024 and sell it today you would earn a total of 4,050 from holding WinMate Communication INC or generate 36.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WinMate Communication INC vs. Sunny Friend Environmental
Performance |
| Timeline |
| WinMate Communication INC |
| Sunny Friend Environ |
WinMate Communication and Sunny Friend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WinMate Communication and Sunny Friend
The main advantage of trading using opposite WinMate Communication and Sunny Friend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WinMate Communication position performs unexpectedly, Sunny Friend 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 Sunny Friend will offset losses from the drop in Sunny Friend's long position.| WinMate Communication vs. Hon Hai Precision | WinMate Communication vs. Delta Electronics | WinMate Communication vs. LARGAN Precision Co | WinMate Communication vs. Yageo Corp |
| Sunny Friend vs. Cleanaway Co | Sunny Friend vs. Taiwan Secom Co | Sunny Friend vs. ECOVE Environment Corp | Sunny Friend vs. TTET Union Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |