Correlation Between Sunny Friend and CTCI Corp
Can any of the company-specific risk be diversified away by investing in both Sunny Friend and CTCI Corp 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 CTCI Corp 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 CTCI Corp, you can compare the effects of market volatilities on Sunny Friend and CTCI Corp 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 CTCI Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Friend and CTCI Corp.
Diversification Opportunities for Sunny Friend and CTCI Corp
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunny and CTCI is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Friend Environmental and CTCI Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTCI Corp 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 CTCI Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTCI Corp has no effect on the direction of Sunny Friend i.e., Sunny Friend and CTCI Corp go up and down completely randomly.
Pair Corralation between Sunny Friend and CTCI Corp
Assuming the 90 days trading horizon Sunny Friend Environmental is expected to generate 2.05 times more return on investment than CTCI Corp. However, Sunny Friend is 2.05 times more volatile than CTCI Corp. It trades about -0.1 of its potential returns per unit of risk. CTCI Corp is currently generating about -0.38 per unit of risk. If you would invest 9,830 in Sunny Friend Environmental on August 29, 2024 and sell it today you would lose (440.00) from holding Sunny Friend Environmental or give up 4.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Friend Environmental vs. CTCI Corp
Performance |
| Timeline |
| Sunny Friend Environ |
| CTCI Corp |
Sunny Friend and CTCI Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Friend and CTCI Corp
The main advantage of trading using opposite Sunny Friend and CTCI Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Friend position performs unexpectedly, CTCI Corp 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 CTCI Corp will offset losses from the drop in CTCI Corp'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 |
| CTCI Corp vs. Sunny Friend Environmental | CTCI Corp vs. TTET Union Corp | CTCI Corp vs. ECOVE Environment Corp | CTCI Corp vs. Yulon Finance Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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