Correlation Between Nishoku Technology and Sunny Friend
Can any of the company-specific risk be diversified away by investing in both Nishoku Technology 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 Nishoku Technology and Sunny Friend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nishoku Technology and Sunny Friend Environmental, you can compare the effects of market volatilities on Nishoku Technology 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 Nishoku Technology with a short position of Sunny Friend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nishoku Technology and Sunny Friend.
Diversification Opportunities for Nishoku Technology and Sunny Friend
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nishoku and Sunny is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Nishoku Technology 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 Nishoku Technology 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 Nishoku Technology 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 Nishoku Technology i.e., Nishoku Technology and Sunny Friend go up and down completely randomly.
Pair Corralation between Nishoku Technology and Sunny Friend
Assuming the 90 days trading horizon Nishoku Technology is expected to under-perform the Sunny Friend. But the stock apears to be less risky and, when comparing its historical volatility, Nishoku Technology is 2.07 times less risky than Sunny Friend. The stock trades about -0.02 of its potential returns per unit of risk. The Sunny Friend Environmental is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 9,490 in Sunny Friend Environmental on August 28, 2024 and sell it today you would lose (100.00) from holding Sunny Friend Environmental or give up 1.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nishoku Technology vs. Sunny Friend Environmental
Performance |
| Timeline |
| Nishoku Technology |
| Sunny Friend Environ |
Nishoku Technology and Sunny Friend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nishoku Technology and Sunny Friend
The main advantage of trading using opposite Nishoku Technology and Sunny Friend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nishoku Technology 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.| Nishoku Technology vs. Shin Zu Shing | Nishoku Technology vs. Arcadyan Technology Corp | Nishoku Technology vs. Tripod Technology Corp | Nishoku Technology vs. Syncmold Enterprise 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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