Correlation Between OBiO Technology and Sunny Loan
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By analyzing existing cross correlation between OBiO Technology Corp and Sunny Loan Top, you can compare the effects of market volatilities on OBiO Technology and Sunny Loan 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 OBiO Technology with a short position of Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of OBiO Technology and Sunny Loan.
Diversification Opportunities for OBiO Technology and Sunny Loan
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between OBiO and Sunny is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding OBiO Technology Corp and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top and OBiO 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 OBiO Technology Corp are associated (or correlated) with Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of OBiO Technology i.e., OBiO Technology and Sunny Loan go up and down completely randomly.
Pair Corralation between OBiO Technology and Sunny Loan
Assuming the 90 days trading horizon OBiO Technology Corp is expected to under-perform the Sunny Loan. In addition to that, OBiO Technology is 1.12 times more volatile than Sunny Loan Top. It trades about -0.05 of its total potential returns per unit of risk. Sunny Loan Top is currently generating about 0.06 per unit of volatility. If you would invest 604.00 in Sunny Loan Top on September 2, 2024 and sell it today you would earn a total of 425.00 from holding Sunny Loan Top or generate 70.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OBiO Technology Corp vs. Sunny Loan Top
Performance |
| Timeline |
| OBiO Technology Corp |
| Sunny Loan Top |
OBiO Technology and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OBiO Technology and Sunny Loan
The main advantage of trading using opposite OBiO Technology and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OBiO Technology position performs unexpectedly, Sunny Loan 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 Loan will offset losses from the drop in Sunny Loan's long position.| OBiO Technology vs. Huatian Hotel Group | OBiO Technology vs. Guangzhou Dongfang Hotel | OBiO Technology vs. ButOne Information Corp | OBiO Technology vs. Bus Online Co |
| Sunny Loan vs. Ping An Insurance | Sunny Loan vs. GRG Banking Equipment | Sunny Loan vs. Guosheng Financial Holding | Sunny Loan vs. Qilu Bank Co |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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