Correlation Between Sunny Loan and Accelink Technologies

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Can any of the company-specific risk be diversified away by investing in both Sunny Loan and Accelink Technologies 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 Loan and Accelink Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunny Loan Top and Accelink Technologies Co, you can compare the effects of market volatilities on Sunny Loan and Accelink Technologies 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 Loan with a short position of Accelink Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and Accelink Technologies.

Diversification Opportunities for Sunny Loan and Accelink Technologies

-0.2
  Correlation Coefficient

Good diversification

The 3 months correlation between Sunny and Accelink is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top and Accelink Technologies Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accelink Technologies and Sunny Loan 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 Loan Top are associated (or correlated) with Accelink Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accelink Technologies has no effect on the direction of Sunny Loan i.e., Sunny Loan and Accelink Technologies go up and down completely randomly.

Pair Corralation between Sunny Loan and Accelink Technologies

Assuming the 90 days trading horizon Sunny Loan Top is expected to under-perform the Accelink Technologies. In addition to that, Sunny Loan is 1.12 times more volatile than Accelink Technologies Co. It trades about -0.18 of its total potential returns per unit of risk. Accelink Technologies Co is currently generating about -0.09 per unit of volatility. If you would invest  5,630  in Accelink Technologies Co on October 25, 2024 and sell it today you would lose (495.00) from holding Accelink Technologies Co or give up 8.79% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Sunny Loan Top  vs.  Accelink Technologies Co

 Performance 
       Timeline  
Sunny Loan Top 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Sunny Loan Top has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
Accelink Technologies 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Accelink Technologies Co are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Accelink Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Sunny Loan and Accelink Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sunny Loan and Accelink Technologies

The main advantage of trading using opposite Sunny Loan and Accelink Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan position performs unexpectedly, Accelink Technologies 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 Accelink Technologies will offset losses from the drop in Accelink Technologies' long position.
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The idea behind Sunny Loan Top and Accelink Technologies Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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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