Correlation Between Sunny Friend and Acbel Polytech
Can any of the company-specific risk be diversified away by investing in both Sunny Friend and Acbel Polytech 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 Acbel Polytech 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 Acbel Polytech, you can compare the effects of market volatilities on Sunny Friend and Acbel Polytech 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 Acbel Polytech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Friend and Acbel Polytech.
Diversification Opportunities for Sunny Friend and Acbel Polytech
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sunny and Acbel is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Friend Environmental and Acbel Polytech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acbel Polytech 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 Acbel Polytech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acbel Polytech has no effect on the direction of Sunny Friend i.e., Sunny Friend and Acbel Polytech go up and down completely randomly.
Pair Corralation between Sunny Friend and Acbel Polytech
Assuming the 90 days trading horizon Sunny Friend Environmental is expected to under-perform the Acbel Polytech. But the stock apears to be less risky and, when comparing its historical volatility, Sunny Friend Environmental is 1.79 times less risky than Acbel Polytech. The stock trades about -0.1 of its potential returns per unit of risk. The Acbel Polytech is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,365 in Acbel Polytech on August 29, 2024 and sell it today you would earn a total of 40.00 from holding Acbel Polytech or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Friend Environmental vs. Acbel Polytech
Performance |
| Timeline |
| Sunny Friend Environ |
| Acbel Polytech |
Sunny Friend and Acbel Polytech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Friend and Acbel Polytech
The main advantage of trading using opposite Sunny Friend and Acbel Polytech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Friend position performs unexpectedly, Acbel Polytech 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 Acbel Polytech will offset losses from the drop in Acbel Polytech'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 |
| Acbel Polytech vs. Yulon Motor Co | Acbel Polytech vs. Far Eastern Department | Acbel Polytech vs. China Steel Corp | Acbel Polytech vs. Chang Hwa Commercial |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |