Correlation Between Sunny Friend and Mayer Steel
Can any of the company-specific risk be diversified away by investing in both Sunny Friend and Mayer Steel 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 Friend and Mayer Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunny Friend Environmental and Mayer Steel Pipe, you can compare the effects of market volatilities on Sunny Friend and Mayer Steel 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 Friend with a short position of Mayer Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Friend and Mayer Steel.
Diversification Opportunities for Sunny Friend and Mayer Steel
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sunny and Mayer is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Friend Environmental and Mayer Steel Pipe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayer Steel Pipe and Sunny Friend 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 Friend Environmental are associated (or correlated) with Mayer Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayer Steel Pipe has no effect on the direction of Sunny Friend i.e., Sunny Friend and Mayer Steel go up and down completely randomly.
Pair Corralation between Sunny Friend and Mayer Steel
Assuming the 90 days trading horizon Sunny Friend Environmental is expected to under-perform the Mayer Steel. In addition to that, Sunny Friend is 2.11 times more volatile than Mayer Steel Pipe. It trades about -0.15 of its total potential returns per unit of risk. Mayer Steel Pipe is currently generating about 0.25 per unit of volatility. If you would invest 2,795 in Mayer Steel Pipe on August 29, 2024 and sell it today you would earn a total of 145.00 from holding Mayer Steel Pipe or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Friend Environmental vs. Mayer Steel Pipe
Performance |
| Timeline |
| Sunny Friend Environ |
| Mayer Steel Pipe |
Sunny Friend and Mayer Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Friend and Mayer Steel
The main advantage of trading using opposite Sunny Friend and Mayer Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Friend position performs unexpectedly, Mayer Steel 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 Mayer Steel will offset losses from the drop in Mayer Steel's long position.| Sunny Friend vs. Cleanaway Co | Sunny Friend vs. Taiwan Secom Co | Sunny Friend vs. ECOVE Environment Corp | Sunny Friend vs. TTET Union Corp |
| Mayer Steel vs. Froch Enterprise Co | Mayer Steel vs. Hsin Kuang Steel | Mayer Steel vs. Chung Hung Steel | Mayer Steel vs. Tung Ho Steel |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |