Correlation Between Grupo Carso and Sunny Optical
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and Sunny Optical 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 Grupo Carso and Sunny Optical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Carso SAB and Sunny Optical Technology, you can compare the effects of market volatilities on Grupo Carso and Sunny Optical 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 Grupo Carso with a short position of Sunny Optical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and Sunny Optical.
Diversification Opportunities for Grupo Carso and Sunny Optical
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Sunny is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and Sunny Optical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Optical Technology and Grupo Carso 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 Grupo Carso SAB are associated (or correlated) with Sunny Optical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Optical Technology has no effect on the direction of Grupo Carso i.e., Grupo Carso and Sunny Optical go up and down completely randomly.
Pair Corralation between Grupo Carso and Sunny Optical
Assuming the 90 days horizon Grupo Carso SAB is expected to generate 0.91 times more return on investment than Sunny Optical. However, Grupo Carso SAB is 1.1 times less risky than Sunny Optical. It trades about 0.06 of its potential returns per unit of risk. Sunny Optical Technology is currently generating about 0.0 per unit of risk. If you would invest 247.00 in Grupo Carso SAB on October 20, 2024 and sell it today you would earn a total of 293.00 from holding Grupo Carso SAB or generate 118.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Carso SAB vs. Sunny Optical Technology
Performance |
| Timeline |
| Grupo Carso SAB |
| Sunny Optical Technology |
Grupo Carso and Sunny Optical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and Sunny Optical
The main advantage of trading using opposite Grupo Carso and Sunny Optical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, Sunny Optical 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 Optical will offset losses from the drop in Sunny Optical's long position.| Grupo Carso vs. SILICON LABORATOR | Grupo Carso vs. Sekisui Chemical Co | Grupo Carso vs. Silicon Motion Technology | Grupo Carso vs. Harmony Gold Mining |
| Sunny Optical vs. Take Two Interactive Software | Sunny Optical vs. DXC Technology Co | Sunny Optical vs. Casio Computer CoLtd | Sunny Optical vs. Easy Software AG |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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